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The Honolulu Advertiser
Posted on: Wednesday, February 5, 2003

Repeal of health coverage law not a goal

 •  Health centers' money cut

By Lynda Arakawa
Advertiser Capitol Bureau

The House Health and Human Services committees yesterday slightly toned down what some have called a "revolutionary" bill to provide universal health coverage for all Hawai'i residents.

State House leaders said last week that they would push for legislation to repeal the 1974 Prepaid Health Care Act and create a state authority to roll public and private health insurance coverages into a state-run insurance fund. The prepaid healthcare law requires employers to pay the bulk of health insurance premiums for full-time employees.

The committees yesterday voted to keep the state authority but opted to look at amending rather than repealing the prepaid health insurance program. House Bill 1617 also calls for reviewing mandated benefits under the prepaid healthcare law and would take effect July 2020.

"We will develop a formula on contributions and of course we want to make sure contributions are more equitable in terms of the employer contributions," said House Health Chairman Dennis Arakaki, D-30th (Moanalua, Kalihi Valley, Alewa). He said there is a proposal that bases contributions on the employees' hourly wage, "so the lower your wage, the less you pay; the higher your wage, the more you pay."

The committees voted along party lines, with Republicans opposed to the bill.

Rep. William Stonebraker, R-17th (Hawai'i Kai, Kalama Valley), said such a program would increase the state budget and questioned how effective it would be in providing healthcare.

Arakaki disagreed, saying the bill calls for a better use of money that the state already spends on healthcare.

The bill will go to the House Labor Committee.

Reach Lynda Arakawa at larakawa@honoluluadvertiser.com or at 525-8070.