As many as 900 children who may have lost health insurance coverage when their parents were laid off by Aloha Airlines last month will be eligible for free medical benefits under a bill currently before state lawmakers.

Ways and Means Committee Chairwoman Sen. Rosalyn Baker says the legislation is a stopgap measure designed to help former airline workers who may be financially strapped after losing their jobs two weeks ago. “It's just a seamless way for us to ensure that while former Aloha Airlines employees are unemployed their kids can be covered; get their shots, get their immunizations (and) continue their visits,” said the Maui democrat.

The measure (SB69, SD2, HD3) is currently in conference committee and has the support of leaders from both the House and Senate. It would extend health care benefits to the children of former Aloha and ATA workers who are at least 31 days old but have not reached their nineteenth birthday.

Health insurance coverage would be provided under the state’s Keiki Care plan, which was passed into law last year after being vetoed by Governor Linda Lingle in 2006.

“It was a partnership with the HMSA Foundation and Department of Human Services,” said Baker. “Children who don't have health care in the private sector can qualify for this because they're probably not qualified for our children's quest program called SCHIP.” (State Children's Health Insurance Program)

Under the Keiki Care Plan the parents of covered children pay a $7 co-payment for physician office visits and a $5 co-payment for generic drugs. Baker said former Aloha employees could continue their health coverage under COBRA (Consolidated Omnibus Budget Reconciliation Act), but for many that option is too expensive.

Meanwhile, the Department of Labor and Industrial relations says 1,400 of Aloha’s 1,900 laid off workers have filed for unemployment insurance claims. Payouts begin three weeks after paperwork is turned in and workers are entitled to 26 weeks of coverage. The maximum weekly payout is $523 but DLIR spokesman James Hardway said the Hawaii average is $420.

With Hawaii’s low unemployment rate of 3.2 percent lawmakers are confident most of the former Aloha employees will be absorbed by other companies across the state.

“You need skilled workers, you need workers with good backgrounds and dedication and good job skills and that certainly describes all of the Aloha workers I've ever come into contact with,” said Baker.

Andrew may be reached at apereira@khon2.com or ph. 591-4263.