HB 343 Summary

• Requires the state auditor to study the feasibility of converting Hawaii's employee health benefits from a fully insured model to a self-insured model, examining potential cost savings and risks.

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

• Caps public employer contributions to the other post-employment benefits trust fund once combined balances reach $2,000,000,000, with excess earnings transferred to the rate stabilization reserve fund.

• Allows the director of finance to deduct required employer contributions to the trust fund from other state revenues collected on behalf of public employers if employer contributions fall short.

• Takes effect July 1, 2023, and appropriates funds from general revenues for the state auditor's study.