HB2389 Summary

• Establishes a rate stabilization reserve fund within the employer-union health benefits trust fund to cover rising health care costs for active employees and retirees when the trust fund has insufficient moneys.

• Caps public employer prefunding contributions once separate accounts for each public employer reach a combined balance of $2,000,000,000, with excess earnings transferred to the rate stabilization reserve fund.

• Transfers all investment income and interest earnings from the Hawaii employer-union health benefits trust fund and other post-employment benefits trust fund to the rate stabilization reserve fund once the $2,000,000,000 threshold is met.

• Continues to provide transient accommodations tax (TAT) revenues to supplement county public employer contributions to the other post-employment benefits trust fund when necessary.

• Effective July 1, 2020.