STAND. COM. REP. NO. 1415

Honolulu, Hawaii

RE:    S.C.R. No. 80

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committees on Judiciary and Labor and Commerce, Consumer Protection, and Health, to which was referred S.C.R. No. 80 entitled:

"SENATE CONCURRENT RESOLUTION URGING THE DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS TO PREPARE A CHECKLIST FOR EMPLOYERS WISHING TO OFFER A HIGH DEDUCTIBLE HEALTH PLAN FOR USE WITH A HEALTH SAVINGS ACCOUNT TO FACILITATE THE SUBMISSION AND APPROVAL PROCESS FOR EMPLOYERS SEEKING SUCH PACKAGES,"

beg leave to report as follows:

     The purpose and intent of this measure is to urge the Department of Labor and Industrial Relations to prepare a checklist for employers wishing to offer a high deductible health plan for use with a health savings account to facilitate the submission and approval of high deductible health plan and health savings account packages submitted to the Director of Labor and Industrial Relations for approval.

     Your Committees received testimony in support of this measure from Alexander & Baldwin, Inc.; Chamber of Commerce Hawaii; and University Health Alliance.  Your Committees received testimony in opposition to this measure from the International Longshore and Warehouse Union, Local 142.  Your Committees received comments on this measure from the Department of Labor and Industrial Relations.

     Your Committees find that employers offering high deductible health plans to their employees enable their employees to receive favorable federal and state tax benefits when they open a health savings account.  Pursuant to existing law, an employer subject to the Hawaii Prepaid Health Care Act is required to receive approval from the Director of Labor and Industrial Relations in order to offer its employees a healthcare option, such as a high deductible health plan in tandem with a health savings account, in addition to coverage under a prepaid health care plan.  To receive approval of a package containing a high deductible health plan in tandem with a health savings account, the employer must make a certain level of contribution to the health savings account and a certain level of contribution to the cost of the coverage of dependents under the package.  By urging the Department of Labor and Industrial Relations to prepare a checklist for employers wishing to offer a high deductible health plan for use with a health savings account, this measure will streamline the process through which employers may obtain approval for these packages to offer to their employees.

     Your Committees have amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Judiciary and Labor and Commerce, Consumer Protection, and Health that are attached to this report, your Committees concur with the intent and purpose of S.C.R. No. 80, as amended herein, and recommend its adoption in the form attached hereto as S.C.R. No. 80, S.D. 1.

Respectfully submitted on behalf of the members of the Committees on Judiciary and Labor and Commerce, Consumer Protection, and Health,

________________________________ ROSALYN H. BAKER, Chair

________________________________ GILBERT S.C. KEITH-AGARAN, Chair