State health plan
ready for launch

State workers will be combined
into one new health fund

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By Lyn Danninger
ldanninger@starbulletin.com

The plan to combine 90,000 active and retired state employees into a single, less-costly health system has been given the go-ahead for implementation July 1.

STAR-BULLETIN / SEPTEMBER 2002 The new Hawaii Employer-Union Benefit Trust Fund will be able to meet its July 1 deadline for operation, Executive Director Mark Fukuhara says.

The decision was made Feb. 26 by the 10-member board of trustees who oversee the Hawaii Employer-Union Benefits Trust Fund, said the fund's executive director, Mark Fukuhara.

The trust fund replaces the existing system, which allows state employees to obtain health benefits either from one of the union-sponsored medical plans or the state Health Fund.

While the insurance carriers that will provide health plan benefits have already been selected by the board, final rates for those plans will be presented next week by a medical benefits consulting firm hired by the board.

"We're waiting for rates and final terms and conditions. The consultant will also have the plan designs for the supplemental, vision and drug plans," Fukuhara said.

Of the approximately 60,000 active state employees, about 40,000 have been enrolled in one of the union sponsored plans, while the remaining 20,000 active employees and 30,000 retirees are covered under the state Health Fund.

There was some question whether the new plan would be ready in time for July 1 after the board, which is made up of five representatives each from management and unions, could not agree on many issues. To complicate matters further, two of the trustees who represented unions, resigned from the board in September. Those two board members have since been replaced.

As part of the legislation enabling the new fund, lawmakers determined the existing state health fund will sunset June 30, leaving the possibility that implementation of the new plan would have to be delayed during this legislative session as differences separating the two sides were ironed out.

One of the biggest issues separating the two groups was contribution levels for the plan.

Under the new trust, during the collective bargaining process, each union would negotiate contributions. In the past, the state contributed 60 percent of the cost of the state Health Fund premium.

Under the new plan, HMSA and Kaiser Permanente will continue to provide medical coverage. Other benefits, including dental, optical, supplementary medical, chiropractic and life insurance will be provided by Hawaii Dental Service, Vision Service Plan, Aetna Inc., and Mutual Benefit Association of Hawaii.

Fukuhara said several new benefits will be added that weren't covered for those enrolled through the state Health Fund.

"We will provide coverage for students up to age 24. The health fund did not do that even though the union plans did. Similarly, we added a chiropractic benefit," he said.

Other changes include bundling the prescription drug plan, whether Kaiser or HMSA, with the basic medical plan. Currently, drug plans are offered separately from the Health Fund plan.

Fukuhara said most people should see benefits equal to or better than their current coverage through the state or union-sponsored plans.

Open enrollment into the new plan is set to begin April 21 and will run through May 21, he said.

A new system will mean less paperwork during the enrollment period, Fukuhara said.

In the past, employees had to fill out new cards during open enrollment. This time the trust fund will first issue all enrollees a card containing relevant information. Those making any changes from what is listed on the card will be encouraged to either fax or e-mail changes.

While any changes will have to be input by hand for this enrollment period, next time, any changes made by employees will be automatically captured by the new system, he said.