HI HR122

Requests the Legislative Reference Bureau to conduct a feasibility study on converting the Hawaii Employer-Union Health Benefits Trust Fund (EUTF) from a fully insured model to a self-insured model.

Study must determine conversion costs and analyze potential financial or other benefits of transitioning to a self-insured, partially self-insured, or other risk retention model.

EUTF currently covers approximately 70,000 active employees plus 60,000 dependents, and 45,000 retirees plus 20,000 dependents with medical, dental, vision, chiropractic, and life insurance benefits.

Potential advantages of self-insured plans include elimination of certain taxes and fees, lower administration costs, elimination of insurance carrier profit margins, improved cash flow, greater benefit design flexibility, and better data collection.

Legislative Reference Bureau must submit findings and recommendations to the Legislature no later than twenty days before the start of the 2019 Regular Session.