THE SENATE	S.B. NO.	1359
THIRTY-THIRD LEGISLATURE, 2025		H.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND BASE COMPOSITE MONTHLY CONTRIBUTION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 87A-33, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The base composite monthly contribution shall be adjusted annually, beginning January 1, [2015. The] 2026, by increasing the base composite monthly contribution in effect on January 1, 2025, by 5.2 per cent. Thereafter, the adjusted base composite monthly contribution for each new plan year (January 1 until December 31) shall be calculated by increasing or decreasing the base composite monthly contribution in effect through the end of the previous plan year by the percentage increase or decrease in the medicare part B premium rate for [those years,] the previous plan year, which percentage shall be calculated by dividing the medicare part B premium rate in effect at the beginning of the [new] previous plan year by the rate in effect at the beginning of the year prior to the previous plan year.

As used in this subsection, "medicare part B premium rate" means the rate published in the Federal Register each year on November 1 or on the business day closest to November 1 of each year after the medicare part B premium rate has been established by the United States Secretary of Health and Human Services and approved by the United States Congress."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

Report Title:

EUTF; Employer Base Composite Monthly Contribution

Description:

Effective 1/1/2026, increases the employer base composite monthly contribution to the Hawaii Employer-Union Health Benefits Trust Fund by 5.2 percent of the 2025 employer base composite monthly contribution. Effective 1/1/2027, requires that the employer base composite monthly contribution be calculated based on the change in Medicare Part B premiums from 2025 to 2026 and at a two-year lag thereafter. (HD2)

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