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COUNTY OF HAWAI`[ STATE OF HAWAII
RESOLUTION NO. 150 05
RESOLUTION AUTHORIZING THE OFFICE OF THE MAYOR TO ENTER INTO A
MEMORANDUM OF UNDERSTANDING WITH THE STATE OF HAWAII
DEPARTMENT OF BUDGET AND FINANCE, PURSUANT TO HRS 46-7, TO
COORDINATE THE APPLICATION TO THE CENTER FOR MEDICARE AND
MEDICAID SERVICES TO RECEIVE THE RETIREE DRUG SUBSIDY
WHEREAS, the U.S. Department of Health and Human Services' Centers for Medicare &
Medicaid Services (CMS) recently published the final regulations for Title I and Title II of the Medicare
Prescription Drug, Improvement, and Modernization Act of 2003 (MMA); and
WHEREAS, Title I contains the provisions governing the special retiree drug subsidies and
other options that were designed to encourage employers and unions to continue providing high
quality prescription drug coverage to their retirees in the form a subsidy payment to the sponsors of
employer and union plans; and
WHEREAS, sponsors of employer and union plans that offer a prescription drug benefit as
good as, or better than, Medicare's defined standard prescription drug benefit under Part D will be
able to apply for the drug subsidy; and
WHEREAS, applying for the Retiree Drug Subsidy (RDS) program provides plan sponsors with
a tax-free subsidy payment of 28 percent of allowable retiree prescription drug costs attributable to
gross prescription drug costs per qualifying covered retiree; and
WHEREAS, the County and the State of Hawaii retiree benefits are administered through the
Hawaii Employer-Union Health Benefits Trust Fund pursuant to Chapter 87A Hawaii Revised Statutes
and the Pension and Retirement Systems pursuant to Chapter 88 Hawaii Revised Statues which
provide drug plans that qualify for the drug subsidy; and
WHEREAS, the State Director of Finance will act on our behalf in filing the application to the
CMS to receive the Medicare Part D subsidy being offered as an incentive to continue current retiree
drug plans; and
WHEREAS, the County of Hawaii will authorize the Hawaii Employer-Union Health Benefits
Trust Fund (EUTF) to release any and all information necessary for the State, through our Director of
Finance, to timely submit the application on behalf of Hawaii County; and
WFIEREAS, Hawaii Revised Statutes, Section 46-7, requires that county departments obtain
the consent of the council to enter into agreements with the federal or state governments respecting
action to be taken pursuant to any of the powers granted by law to furnish, expend, and receive any
funds or other assistance in connection with projects being or to be undertaken pursuant to those
powers.
NOW, T'I-IEFt~FOFZE, ~E IT ~~~OLV~® ~Y THE COUNCIL OF ThiE COUNTY OE I~~?WAI`I,
in accordance with section 46-7, Hawaii Revised Statutes, that the Mayor of the County of Hawaii is
authorized to execute, on behalf of the County, a Memorandum of Understanding with the State of
Hawaii Department of Budget and Finance, to enable the County to participate in the Retiree Drug
Subsidy Program.
~E IT ~UF~THER I~ESOLVEU that the County Clerk of the County of Hawaii shall transmit
copies of this resolution to the Office of the Mayor and the Department of Finance.
Dated at xilo ,Hawaii, this 17th day of August , 2005.
INTRODUCED BY:
COUNCIL MEMBER, COUNTY OF HAWAII
COUNTY COU'~C[L ROLL CALL VOTE
County of Hawaii
Hilo_ Hawaii AYES 'NOES ABS EX
.ARAKAKI X
[ hereby certify that the fore~uin~, RESOI.UI'ION was by the RIGA X
vote indicated to the right hereufadopted by the COUNCIL of HOFFMANN X
the County o1~Hawai'i on Auqu_st 17L_2005 HOLSCHUH X
IKEDA
ATTEST
ISBELL
JACOBSON X
PILAGO X
SAFARIK X
8 0 1 0
Reference C-393/waived FC
COUNTY' CLERK (.'HAllZM.~r~ & PRESII~IIvG OFFICER RESOLUTION NO.