STAND. COM. REP. NO. 1180

Honolulu, Hawaii

, 2025

RE: S.B. No. 1359

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Labor, 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 of this measure is to:

(1) Effective 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) Effective January 1, 2027, require the calculation of the employer base composite monthly contribution to be based on the change in Medicare Part B premiums from 2025-2026 and at two-year increments thereafter.

Your Committee received testimony in support of this measure from the Hawaii Employer-Union Health Benefits Trust Fund Board of Trustees.

Your Committee finds that the employer's monthly base composite contribution to the Employer-Union Health Benefits Trust Fund, as it relates to Medicare Part B premiums, are published shortly after open enrollment for retired members of the Employees' Retirement System ends, resulting in retirees committing to healthcare plans for the upcoming year without knowing what the employer's contributions will be. Your Committee believes that this measure will give retirees adequate time to make informed decisions regarding their healthcare benefits.

Your Committee has amended this measure by changing the effective date to July 1, 3000, to encourage further discussion.

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

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

____________________________

JACKSON D. SAYAMA, Chair