HB1040 • 2026

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

Healthcare Labor

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: NAKAMURA (Introduced by request of another party)
Last action: 2025-12-08
Official status: Carried over to 2026 Regular Session.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide information on the exact impact of the bill on health benefits provided to employees or employers' costs beyond the specified percentage increase and calculation method based on Medicare Part B premiums.

Hawaii Employer-Union Health Benefits Trust Fund Contribution Increase

This bill increases the monthly contribution employers make to Hawaii's health benefits trust fund by 5.2 percent starting January 1, 2026, and then adjusts it based on changes in Medicare Part B premiums from 2025 to 2026 and every two years thereafter.

What This Bill Does

Increases the employer base composite monthly contribution to the Hawaii Employer-Union Health Benefits Trust Fund by 5.2 percent of the 2025 contribution amount starting January 1, 2026.
Starting January 1, 2027, calculates future contributions based on changes in Medicare Part B premiums from the previous two years.

Who It Names or Affects

Employers who contribute to the Hawaii Employer-Union Health Benefits Trust Fund

Terms To Know

Medicare Part B Premium Rate: The cost of Medicare Part B, which covers medical services and supplies.

Limits and Unknowns

The bill does not specify what happens if there are no changes in Medicare Part B premiums.
It is unclear how this change will affect the overall health benefits provided to employees.
The exact impact on employers' costs is uncertain until the actual premium rates for future years are known.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment changes how the base composite monthly contribution to the Hawaii Employer-Union Health Benefits Trust Fund is calculated, starting with a fixed increase in 2026 and then adjusting based on Medicare Part B premium rate changes.

Increases the employer's base composite monthly contribution by 5.2% of the 2025 contribution amount as of January 1, 2026.
After 2026, adjusts the contribution each year based on the percentage change in Medicare Part B premiums from the previous two years.

The amendment specifies a future effective date (July 1, 3000) which seems unusual and may be an error or placeholder.
Details about how contributions will be calculated before January 1, 2026 are not provided in the amendment text.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-02-11 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Ward excused (2).
2025-02-11 H
Reported from LAB (Stand. Com. Rep. No. 318) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
2025-02-04 H
The committee on LAB recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 4 Ayes: Representative(s) Sayama, Lee, M., Garrett, Kapela; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Kong, Reyes Oda.
2025-01-31 H
Bill scheduled to be heard by LAB on Tuesday, 02-04-25 9:00AM in House conference room 309 VIA VIDEOCONFERENCE.
2025-01-23 H
Referred to LAB, FIN, referral sheet 3
2025-01-23 H
Introduced and Pass First Reading.
2025-01-21 H
Pending introduction.

Official Summary Text

RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND BASE COMPOSITE MONTHLY CONTRIBUTION.
EUTF; Employer Base Composite Monthly Contribution
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 the calculation of employer base composite monthly contribution based on the change in Medicare Part B premiums from 2025 to 2026 and at two-year increments thereafter. Effective 7/1/3000. (HD1)

Current Bill Text

Read the full stored bill text

HB1040

HOUSE OF REPRESENTATIVES

H.B. NO.

1040

THIRTY-THIRD LEGISLATURE, 2025

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.

INTRODUCED BY:

_____________________________

BY REQUEST

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.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.