STAND. COM. REP. NO. 1992

Honolulu, Hawaii

, 2025

RE: S.B. No. 1359

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Finance, to which was referred S.B. No. 1359, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND BASE COMPOSITE MONTHLY CONTRIBUTION,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Beginning January 1, 2026, increase 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; and

(2) Beginning January 1, 2027, require 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.

Your Committee received testimony in support of this measure from the Hawaii Employer-Union Health Benefits Trust Fund Board of Trustees and Oʻahu District Hawaii State Teacher Association-Retired.

Your Committee has amended this measure by changing its effective date to upon approval.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1359, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1359, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

KYLE T. YAMASHITA, Chair