Seth S. Colby

The report discusses the actuarial valuation of the Employees' Retirement System of the State of Hawaii (ERS) as of June 30, 2011. It covers key results, including membership data, assets, and actuarial information such as normal costs, unfunded actuarial accrued liability (UAAL), and funded ratios. The report also addresses the progress toward realizing financing objectives, benefit provisions, legislative changes, actuarial assumptions, and methods used in the valuation. It includes an analysis of changes in the UAAL, ERS assets, and GASB 25 disclosure requirements.

The meeting included discussions and updates on various health management programs. Kaiser Permanente and HMSA presented their Disease Management/Integrated Health Management (DM/IHM) improvement plans, focusing on strategies to improve diabetes and hypertension control, obesity prevalence, and preventive care. There was a presentation on the AccordantCare Rare program, with a motion to recommend its termination for active employees. HMSA provided updates on the Virta Digital Diabetes Program and its Primary Care Payment Model. The committee also reviewed PPO medical options for active employees and considered plan changes, including the addition of an intensive cardiac rehabilitation benefit and 100% coverage of caries risk assessment under the HDS dental plans. Kaiser Permanente reported a pause in providing gender-affirming surgical treatment for members under age 19 at their facilities.

The meeting included discussions and actions on several key areas. The Board approved revised Administrative Rule Changes for submission to the Governor. The Investment Committee's recommendation to place AlphaSimplex on Watch status was approved, and the Trend Following benchmark was changed. The Updated Investment Policy Statement was also approved. The EUTF Annual Report for fiscal year 2024-2025 was approved for submission to the Legislature, along with legislative proposals to amend Hawaii Revised Statutes 87A-24 and to remove contribution limitations in Hawaii Revised Statutes 87A-32, 33, 34, 35 and 36. A supplemental budget request for July 1, 2026 -- June 30, 2027 was approved. The board also approved a commitment of funds to a private credit fund and a private equity fund, both subject to contract negotiations. An appeal to amend Open Enrollment election was deferred.

This 2011 update to a 1999 report by the Health Futures Task Force addresses challenges within Hawaii's Medicaid system. It proposes eight principles for cost-effective, sustainable health care reform, including universality, standardized benefits, simplified administration, promotion of professionalism, quality improvement, an adequate professional workforce, accountability to population health needs, and separate, sustainable funding. The recommendations advocate for de-privatizing and consolidating Medicaid into a single state-run plan, with the ultimate goal of establishing a universal, publicly funded health program for all Hawaii residents, aiming to improve access, enhance quality, and achieve significant cost savings.

The committee approved recommendations to the Board to commit funds to a private credit fund and a private equity fund, both subject to contract negotiations. Meketa recommended placing AlphaSimplex on Watch status effective July 1, 2025, for performance reasons. The committee also recommended to the Board a change of the Trend Following benchmark from the Credit Suisse Managed Futures (15% Volatility) Index to the Societe Generale (SG) Trend Index effective July 1, 2025. Additionally, the committee recommended to the Board approval of the Updated Investment Policy Statement.