RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND BASE COMPOSITE MONTHLY CONTRIBUTION.
Summary
HB1040 amends the statute governing the Hawaii Employer-Union Health Benefits Trust Fund’s base composite monthly contribution. The bill would increase the employer base composite monthly contribution by 5.2 percent effective January 1, 2026, using the January 1, 2025 contribution as the base. After that initial increase, the contribution would be adjusted for each new plan year based on the change in the Medicare Part B premium rate, with the calculation tied to the prior plan year’s premium rate and the year before that.
The bill also updates the timing and mechanics of the annual adjustment formula. It defines “Medicare Part B premium rate” by reference to the rate published in the Federal Register each year around November 1, after federal establishment and congressional approval. The measure is framed as a technical update to the employer contribution formula for the state’s public employee health benefits system, but it has direct fiscal implications for employer contributions into the trust fund.
Impact
HB1040 would amend section 87A-33, Hawaii Revised Statutes, affecting how the state calculates employer contributions to the Hawaii Employer-Union Health Benefits Trust Fund. It would create a one-time 5.2 percent increase in the base composite monthly contribution starting in 2026 and then tie future adjustments to Medicare Part B premium changes, which could increase or decrease employer costs depending on federal premium movements. The bill primarily affects public employers and the administration of state employee and union health benefits funding.
Sentiment
The available legislative history suggests generally favorable treatment of the bill. It passed Second Reading as amended in HD 1 and was referred onward without any recorded votes in opposition or with reservations, indicating no visible floor-level resistance at that stage. The absence of recorded dissent in the provided history suggests the measure was viewed as a routine or broadly acceptable adjustment to the health benefits contribution formula.
Contention
No specific committee objections or debate excerpts were provided, so there is no documented substantive controversy in the supplied materials. Potential points of concern implied by the bill itself are fiscal: employers and budget stakeholders may focus on the immediate 5.2 percent increase and the future indexing of contributions to Medicare Part B premiums, which could raise costs over time. However, the record provided does not identify any named opponents or disputed policy issues.
Requesting The Hawaii Employer-union Benefits Trust Fund Board Of Trustees And Department Of Human Services Med-quest Division To Ensure That All Offered Health Plans Provide Twelve Per Cent Of Monthly Insurance Premium Payments Directly To Each Respective Member-patient's Primary Care Provider.
Requesting The Hawaii Employer-union Benefits Trust Fund Board Of Trustees And Department Of Human Services Med-quest Division To Ensure That All Offered Health Plans Provide Twelve Per Cent Of Monthly Insurance Premium Payments Directly To Each Respective Member-patient's Primary Care Provider.