H.B. 2209 Summary

• Establishes a state-level individual mandate requiring qualified Hawaii taxpayers age 18 and over to maintain creditable health insurance coverage or pay a penalty on their income tax return, effective for taxable years after December 31, 2017.

• Defines "qualified taxpayers" as individuals filing Hawaii income tax returns, not claimed as dependents, physically present in Hawaii for more than 9 months of the tax year, with household income not exceeding a specified percentage of federal poverty guidelines, and if married, filing jointly.

• Permits a 63-day grace period for lapses in coverage and exempts those who obtain affordable coverage through Hawaii's health insurance marketplace from penalties.

• Grants the Insurance Commissioner authority to determine which health plans are "affordable," maintain an annual list of approved plans, issue hardship exemption certificates, and establish an appeals process for taxpayers disputing penalty assessments.

• Authorizes the Department of Taxation to assess penalties on any overpaid taxes up to a specified limit, retain overpayments to offset penalties, and enforce collection using all available procedures under Hawaii tax law.