HI HB407

Requires the state auditor to study the feasibility of converting Hawaii's employee health benefits from fully insured to self-insured model, examining historical census data, premiums, contributions, claims information, and potential risks and savings.

Auditor must submit study findings and recommendations to the legislature no later than 20 days before the 2022 regular session convening.

Establishes a rate stabilization reserve fund within the employer-union health benefits trust fund to cover increasing health benefit costs for active employees and retirees when the main trust fund has insufficient funds.

Caps public employer prefunding contributions to the other post-employment benefits trust fund at $2,000,000,000 combined balance, after which excess investment earnings transfer to the rate stabilization reserve fund.

Authorizes use of transient accommodations tax revenues to supplement deficient county public employer contribution amounts to the other post-employment benefits trust fund.