STAND. COM. REP. NO. 784

Honolulu, Hawaii

RE: S.B. No. 1359

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1359 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 and intent of this measure is to increase the Hawaii employer-union health benefits trust fund employer base composite monthly contribution for January 1, 2026, by 5.2 percent of the January 1, 2025, amount.

Your Committee received written comments in support of this measure from the Hawaii Employer-Union Health Benefits Trust Fund.

Your Committee finds that the current calculation of the employer base composite monthly contribution relies on Medicare Part B premium amounts that are sometimes not published until after the retiree open enrollment period. Accordingly, in some years, retirees are uncertain of their employer's contribution amounts when deciding to enroll in the program. Your Committee further finds that this measure will correct this problem by requiring the employer contribution amounts to be calculated based on Medicare Part B premium amounts that are published before open enrollment, thereby providing more certainty to retirees during open enrollment.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1359 and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair