SB 2088: DLIR; Insurance Commissioner; Nontraditional Workforce; Portable Health Care Benefits; Voluntary Pilot Program; High Deductible Health Plan; Catastrophic Health Plan; Health Savings Account; Reports; Appropriation
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2026-03-19
Current Status:
Failed
(2026-03-20: Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with none voting aye with reservations; Representative(s) Shimizu voting no (1) and Representative(s) Quinlan excused (1).)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Final Decking
Enacted
Requires the Department of Labor and Industrial Relations, in consultation with the Insurance Commissioner, to establish and implement a five-year voluntary Nontraditional Workforce Portable Health Care Benefit Plan Pilot Program that offers high deductible health plans or catastrophic health plans to nontraditional workers who are ineligible for health benefits provided by the Hawaii Employer-Union Health Benefits Trust Fund or prepaid health care plans under the Prepaid Health Care Act. Requires reports to the Legislature. Appropriates funds. Effective 7/1/3000. (HD1)
Requires the Department of Labor and Industrial Relations, in consultation with the Insurance Commissioner, to establish and implement a five-year voluntary Nontraditional Workforce Portable Health Care Benefit Plan Pilot Program that offers high deductible health plans or catastrophic health plans to nontraditional workers who are ineligible for health benefits provided by the Hawaii Employer-Union Health Benefits Trust Fund or prepaid health care plans under the Prepaid Health Care Act. Requires reports to the Legislature. Appropriates funds. Effective 1/1/2077. (SD1)
Requires the Department of Labor and Industrial Relations, in consultation with the Insurance Commissioner, to establish and implement a five-year voluntary Nontraditional Workforce Portable Health Care Benefit Plan Pilot Program that offers high deductible health plans or catastrophic health plans to nontraditional workers who are ineligible for health benefits provided by the Hawaii Employer-Union Health Benefits Trust Fund or prepaid health care plans under the Prepaid Health Care Act. Requires reports to the Legislature. Appropriates funds.
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THE SENATE |
S.B. NO. |
2088 |
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THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 1 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO HEALTH CARE PLANS FOR WORKERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further finds that the passage of Public Law 119-21, also known as the One Big Beautiful Bill Act of 2025, may jeopardize the health care of these nontraditional workers by reducing access to affordable health insurance provided through federal programs such as medicaid. The resulting increase in the local uninsured population would threaten the well-being and economic stability of much of the State's workforce. Therefore, the legislature believes it is necessary to establish a health insurance framework for nontraditional workers in the State to safeguard their affordable access to essential medical services.
Accordingly, the purpose of this Act is to require the department of labor and industrial relations, in consultation with the insurance commissioner, to:
(1) Establish a nontraditional workforce voluntary portable health care benefit plan pilot program to offer high deductible health plans or catastrophic health plans to workers not covered by the Hawaii employer-union health benefits trust fund or the Prepaid Health Care Act; and
(2) Submit annual reports to the legislature on the pilot program.
SECTION 2. (a) The department, in consultation with the insurance commissioner, shall establish and implement a five-year voluntary nontraditional workforce portable health care benefit plan pilot program to expand access to basic affordable health insurance for nontraditional workers not eligible for health benefits provided pursuant to chapter 87A, Hawaii Revised Statutes, or a prepaid health care plan pursuant to chapter 393, Hawaii Revised Statutes. The pilot program shall offer portable health care benefit plans to nontraditional workers pursuant to the conditions outlined in subsection (b). Any employee or worker eligible for health benefits provided pursuant to chapter 87A, Hawaii Revised Statutes, or a prepaid health care plan pursuant to chapter 393, Hawaii Revised Statutes, shall not be eligible to participate in the pilot program. The department may contract with a private entity to administer the pilot program.
(b) The department shall develop standards and qualifications for the administration of and participation in the pilot program, which shall at a minimum meet the following requirements:
(1) A government entity or private entity may offer a portable health care benefit plan;
(2) Participation by employers and nontraditional workers shall be voluntary;
(3) The department, in consultation with the insurance commissioner, shall:
(A) Establish standards of minimum essential benefit coverage for portable health care benefit plans to be provided under the pilot program; provided that coverage for preventative care, telehealth services, and mental health access shall be core benefits; provided further that the standards shall emphasize coverage for emergency or catastrophe protections;
(B) Determine optimal income thresholds and the levels of cost-sharing reductions on out‑of‑pocket expenses to be allowed under the portable health care plans; and
(C) Ensure the pilot program and all health care benefit plans offered under the pilot program are in compliance with applicable federal laws;
(4) The department may issue premium subsidies and vouchers to eligible individuals enrolled in the pilot program. Any moneys contributed by the State to a portable health care benefit plan and not expended shall return to the general fund and become general realizations of the State should the individual beneficiary exit the pilot program;
(5) Contributions to a portable health care benefit plan:
(A) Shall be voluntary; and
(B) Shall not be used as a criterion for determining a person's employment classification, including for determining eligibility for prepaid health care pursuant to chapter 393, Hawaii Revised Statutes; and
(6) If an internet or application-based company contributes to a portable health care benefit plan for the benefit of an individual beneficiary:
(A) The contribution shall not be evidence of employer liability; and
(B) A court shall not construe the contribution as an element of an employment relationship for the purposes of:
(i) Employment security benefits pursuant to chapter 383, Hawaii Revised Statutes;
(ii) Workers' compensation pursuant to chapter 386, Hawaii Revised Statutes; or
(iii) Temporary disability insurance pursuant to chapter 392, Hawaii Revised Statutes.
(c) The department may adopt rules pursuant to chapter 91, Hawaii Revised Statutes, to carry out the purposes of this Act.
(d) The department, in consultation with the insurance commissioner, shall submit annual reports on the development and implementation of the nontraditional workforce portable health care benefit plan pilot program established pursuant to this section, including impacts to statewide health insurance enrollment, health care costs and affordability, health outcomes, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular sessions of 2027, 2028, 2029, and 2030.
(e) The department, in consultation with the insurance commissioner, shall submit a final report on the nontraditional workforce portable health care benefit plan pilot program established pursuant to this section, including impacts to statewide health insurance enrollment, health care costs and affordability, health outcomes, recommendations on whether the pilot program should be extended or made permanent, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2031.
(f) For the purposes of this section:
"Catastrophic plan" has the same meaning as defined in title 42 United States Code section 18022(e).
"Department" means the department of labor and industrial relations.
"Health savings account" has the same meaning as in title 26 United States Code section 223(d).
"High deductible health plan" has the same meaning as in title 26 United States Code section 223(c)(2).
"Hiring party" means a person who hires or enters into a contract for services with a nontraditional worker. "Hiring party" includes the State, any of its political subdivisions, or any instrumentality of the State or its political subdivisions. "Hiring party" does not include:
(1) The United States government or any instrumentality of the United States;
(2) Any other state or political subdivision thereof or instrumentality of such state or political subdivision; or
(3) Any foreign government or instrumentality wholly owned by a foreign government; provided that:
(A) The service performed in its employ is of a character similar to that performed in foreign countries by employees of the United States government or of an instrumentality thereof; and
(B) The United States Secretary of State has certified or certifies to the United States Secretary of the Treasury that the foreign government, with respect to whose instrumentality exemption is claimed, grants an equivalent exemption with respect to similar service performed in the foreign country by employees of the United States government and of instrumentalities thereof.
"Nontraditional worker" means a person who performs a service for hire for a hiring party pursuant to a contract but is not an employee, as defined in section 87A-1, Hawaii Revised Statutes, or a regular employee as defined in section 393-3, Hawaii Revised Statutes, and is not eligible for health benefits under chapter 87A, Hawaii Revised Statutes, or a prepaid health care plan under chapter 393, Hawaii Revised Statutes. "Nontraditional worker" does not include a person employed in seasonal employment, as defined in section 393-3, Hawaii Revised Statutes. "Nontraditional worker" includes independent contractors, including gig workers, part-time employees, sole proprietors, and self-employed individuals.
"Portable health care benefit plan" means a group health care plan that:
(1) Offers a high deductible health plan or catastrophic plan in accordance with federal law;
(2) Offers at least one health savings account-eligible plan option in accordance with federal law; and
(3) Is assigned to an individual beneficiary and is not associated with a specific employer or hiring party.
(g) The nontraditional workforce portable health care benefit plan pilot program shall cease to exist on June 30, 2031.
SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 for the development and implementation of the nontraditional workforce portable health care benefit plan pilot program established by section 2 of this Act.
The sum appropriated shall be expended by the department of labor and industrial relations for the purposes of this Act.
SECTION 4. If this Act or any provision of this Act conflicts at any time with any federal law, then the federal law shall prevail and this Act or the relevant provisions of this Act shall become ineffective and invalid. The ineffectiveness and invalidity of this Act or any of its provisions shall not affect any other provisions or applications of this Act, which shall be given effect without the invalid provision or application, and to this end, the provisions of this Act are severable.
SECTION 5. If any part of this Act is found to be in conflict with federal requirements that are a prescribed condition for the allocation of federal funds to the State or the State's eligibility for federal waiver programs, the conflicting part of this Act shall be inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this Act in its application to the agencies concerned.
SECTION 6. This Act shall take effect on July 1, 3000.
Report Title:
DLIR; Insurance Commissioner; Nontraditional Workforce; Portable Health Care Benefits; Voluntary Pilot Program; High Deductible Health Plan; Catastrophic Health Plan; Health Savings Account; Reports; Appropriation
Description:
Requires the Department of Labor and Industrial Relations, in consultation with the Insurance Commissioner, to establish and implement a five-year voluntary Nontraditional Workforce Portable Health Care Benefit Plan Pilot Program that offers high deductible health plans or catastrophic health plans to nontraditional workers who are ineligible for health benefits provided by the Hawaii Employer-Union Health Benefits Trust Fund or prepaid health care plans under the Prepaid Health Care Act. Requires reports to the Legislature. Appropriates funds. Effective 7/1/3000. (HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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THE SENATE |
S.B. NO. |
2088 |
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THIRTY-THIRD LEGISLATURE, 2026 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO HEALTH CARE PLANS FOR WORKERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further finds that the passage of Public Law 119-21, also known as the One Big Beautiful Bill Act of 2025, may jeopardize the health care of these nontraditional workers by reducing access to affordable health insurance provided through federal programs such as medicaid. The resulting increase in the local uninsured population would threaten the well-being and economic stability of much of the State's workforce. Therefore, the legislature believes it is necessary to establish a health insurance framework for nontraditional workers in the State to safeguard their affordable access to essential medical services.
Accordingly, the purpose of this Act is to require the department of labor and industrial relations, in consultation with the insurance commissioner, to:
(1) Establish a voluntary portable health care benefit plan pilot program to offer high deductible health plans or catastrophic health plans to workers not covered by the Hawaii Employer-Union Health Benefits Trust Fund or the Prepaid Health Care Act; and
(2) Submit annual reports to the legislature on the pilot program.
SECTION 2. (a) The department of labor and industrial relations, in consultation with the insurance commissioner, shall establish and implement a five-year voluntary nontraditional workforce portable health care benefit plan pilot program to expand access to basic affordable health insurance for nontraditional workers not eligible for health benefits provided pursuant to chapter 87A, Hawaii Revised Statutes, or a prepaid health care plan pursuant to chapter 393, Hawaii Revised Statutes. The pilot program shall offer portable health care benefit plans to nontraditional workers pursuant to the conditions outlined in subsection (b). Any employee or worker eligible for health benefits provided pursuant to chapter 87A, Hawaii Revised Statutes, or a prepaid health care plan pursuant to chapter 393, Hawaii Revised Statutes, shall not be eligible to participate in the pilot program. The department may contract with a private entity to administer the pilot program.
(b) The department shall develop standards and qualifications for the administration of and participation in the pilot program, which shall at a minimum meet the following requirements:
(1) A government entity or private entity may offer a portable health care benefit plan;
(2) Participation by employers and nontraditional workers shall be voluntary;
(3) The department, in consultation with the insurance commissioner, shall:
(A) Establish standards of minimum essential benefit coverage for portable health care benefit plans to be provided under the pilot program; provided that coverage for preventative care, telehealth services, and mental health access shall be core benefits; provided further that the standards shall emphasize coverage for emergency or catastrophe protections;
(B) Determine optimal income thresholds and the levels of cost-sharing reductions on out‑of‑pocket expenses to be allowed under the portable health care plans; and
(C) Ensure the pilot program and all health care benefit plans offered under the pilot program are in compliance with applicable federal laws;
(4) The department may issue premium subsidies and vouchers to eligible individuals enrolled in the pilot program. Any moneys contributed by the State to a portable health care benefit plan and not expended shall return to the general fund of the State and become general realizations of the State should the individual beneficiary exit the pilot program;
(5) Contributions to a portable health care benefit plan:
(A) Shall be voluntary; and
(B) Shall not be used as a criterion for determining a person's employment classification, including for determining eligibility for prepaid health care pursuant to chapter 393, Hawaii Revised Statutes; and
(6) If an internet or application-based company contributes to a portable health care benefit plan for the benefit of an individual beneficiary:
(A) The contribution shall not be evidence of employer liability; and
(B) A court shall not construe the contribution as an element of an employment relationship for the purposes of:
(i) Employment security benefits pursuant to chapter 383, Hawaii Revised Statutes;
(ii) Workers' compensation pursuant to chapter 386, Hawaii Revised Statutes; or
(iii) Temporary disability insurance pursuant to chapter 392, Hawaii Revised Statutes.
(c) The department may adopt rules pursuant to chapter 91, Hawaii Revised Statutes, to carry out the purposes of this Act.
(d) The department, in consultation with the insurance commissioner, shall submit annual reports on the development and implementation of the nontraditional workforce portable health care benefit plan pilot program established pursuant to this section, including impacts to statewide health insurance enrollment, health care costs and affordability, health outcomes, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular sessions of 2027, 2028, 2029, and 2030.
(e) The department, in consultation with the insurance commissioner, shall submit a final report on the nontraditional workforce portable health care benefit plan pilot program established pursuant to this section, including impacts to statewide health insurance enrollment, health care costs and affordability, health outcomes, recommendations on whether the pilot program should be extended or made permanent, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2031.
(f) For the purposes of this section:
"Catastrophic plan" has the same meaning as defined in title 42 United States Code section 18022(e).
"Department" means the department of labor and industrial relations.
"Health savings account" has the same meaning as defined in title 26 United States Code section 223(d).
"High deductible health plan" has the same meaning as defined in title 26 United States Code section 223(c)(2).
"Hiring party" means a person who hires or enters into a contract for services with a nontraditional worker. "Hiring party" includes the State, any of its political subdivisions, or any instrumentality of the State or its political subdivisions. "Hiring party" does not include:
(1) The Unites States government or any instrumentality of the United States;
(2) Any other state or political subdivision thereof or instrumentality of such state or political subdivision; or
(3) Any foreign government or instrumentality wholly owned by a foreign government; provided that:
(A) The service performed in its employ is of a character similar to that performed in foreign countries by employees of the United States government or of an instrumentality thereof; and
(B) The United States Secretary of State has certified or certifies to the United States Secretary of the Treasury that the foreign government, with respect to whose instrumentality exemption is claimed, grants an equivalent exemption with respect to similar service performed in the foreign country by employees of the United States government and of instrumentalities thereof.
"Nontraditional worker" means a person who performs a service for hire for a hiring party pursuant to a contract but is not an employee, as defined in section 87A-1, Hawaii Revised Statutes, or a regular employee as defined in section 393-3, Hawaii Revised Statutes, and is not eligible for health benefits under chapter 87A, Hawaii Revised Statutes, or a prepaid health care plan under chapter 393, Hawaii Revised Statutes; provided that "nontraditional worker" does not include a person employed in seasonal employment, as defined in section 393-3, Hawaii Revised Statutes. "Nontraditional worker" includes independent contractors, including gig workers; part-time employees; sole proprietors; and self-employed individuals.
"Portable health care benefit plan" means a group health care plan that:
(1) Offers a high deductible health plan or catastrophic plan in accordance with federal law;
(2) Offers at least one health savings account-eligible plan option in accordance with federal law; and
(3) Is assigned to an individual beneficiary and is not associated with a specific employer or hiring party.
(g) The nontraditional workforce portable health care benefit plan pilot program shall cease to exist on June 30, 2031.
SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 for the development and implementation of the nontraditional workforce portable health care benefit plan pilot program established by section 2 of this Act.
The sum appropriated shall be expended by the department of labor and industrial relations for the purposes of this Act.
SECTION 4. If this Act or any provision of this Act conflicts at any time with any federal law, then the federal law shall prevail and this Act or the relevant provisions of this Act shall become ineffective and invalid. The ineffectiveness and invalidity of this Act or any of its provisions shall not affect any other provisions or applications of this Act, which shall be given effect without the invalid provision or application, and to this end, the provisions of this Act are severable.
SECTION 5. If any part of this Act is found to be in conflict with federal requirements that are a prescribed condition for the allocation of federal funds to the State or the State's eligibility for federal waiver programs, the conflicting part of this Act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this Act in its application to the agencies concerned.
SECTION 6. This Act shall take effect on January 1, 2077.
Report Title:
DLIR; Insurance Commissioner; Nontraditional Workforce; Portable Health Care Benefits; Voluntary Pilot Program; High Deductible Health Plan; Catastrophic Health Plan; Health Savings Account; Reports; Appropriation
Description:
Requires the Department of Labor and Industrial Relations, in consultation with the Insurance Commissioner, to establish and implement a five-year voluntary Nontraditional Workforce Portable Health Care Benefit Plan Pilot Program that offers high deductible health plans or catastrophic health plans to nontraditional workers who are ineligible for health benefits provided by the Hawaii Employer-Union Health Benefits Trust Fund or prepaid health care plans under the Prepaid Health Care Act. Requires reports to the Legislature. Appropriates funds. Effective 1/1/2077. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
|
THE SENATE |
S.B. NO. |
2088 |
|
THIRTY-THIRD LEGISLATURE, 2026 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
Relating to Health Care PLANS FOR WORKERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further finds that the passage of the One Big Beautiful Bill Act of 2025 may jeopardize the health care of these nontraditional workers by reducing access to affordable health insurance provided through federal programs such as medicaid. The resulting increase in the local uninsured population would threaten the well-being and economic stability of much of the State's workforce. Therefore, the legislature believes it is necessary to establish a health insurance framework for nontraditional workers in the State to safeguard their affordable access to essential medical services.
Accordingly, the purpose of this Act is to require the department of labor and industrial relations, in consultation with the insurance commissioner, to:
(1) Establish a voluntary portable health care benefit plan pilot program to offer high deductible health plans or catastrophic health plans to workers not covered by the Hawaii Employer-Union Health Benefits Trust Fund or the PHCA; and
(2) Submit annual reports to the legislature on the pilot program.
SECTION 2. (a) The department of labor and industrial relations, in consultation with the insurance commissioner, shall establish and implement a five-year voluntary nontraditional workforce portable health care benefit plan pilot program to expand access to basic affordable health insurance for nontraditional workers not eligible for health benefits provided pursuant to chapter 87A, Hawaii Revised Statutes, or a prepaid health care plan pursuant to chapter 393, Hawaii Revised Statutes. The pilot program shall offer portable health care benefit plans to nontraditional workers pursuant to the conditions outlined in subsection (b). Any employee or worker eligible for health benefits provided pursuant to chapter 87A, Hawaii Revised Statutes, or a prepaid health care plan pursuant to chapter 393, Hawaii Revised Statutes, shall not be eligible to participate in the pilot program. The department may contract with a private entity to administer the pilot program.
(b) The department shall develop standards and qualifications for the administration of and participation in the pilot program, which shall at a minimum meet the following requirements:
(1) A government entity or private entity may offer a portable health care benefit plan;
(2) Participation by employers and nontraditional workers shall be voluntary;
(3) The department, in consultation with the insurance commissioner, shall:
(A) Establish standards of minimum essential benefit coverage for portable health care benefit plans to be provided under the pilot program; provided that coverage for preventative care, telehealth services, and mental health access shall be core benefits; provided further that the standards shall emphasize coverage for emergency or catastrophe protections;
(B) Determine optimal income thresholds and the levels of cost-sharing reductions on out‑of‑pocket expenses to be allowed under the portable health care plans; and
(C) Ensure the pilot program and all health care benefit plans offered under the pilot program are in compliance with applicable federal laws;
(4) The department may issue premium subsidies and vouchers to eligible individuals enrolled in the pilot program. Any moneys contributed by the State to a portable health care benefit plan and not expended shall return to the general fund of the State and become general realizations of the State should the individual beneficiary exit the pilot program;
(5) Contributions to a portable health care benefit plan:
(A) Shall be voluntary; and
(B) Shall not be used as a criterion for determining a person's employment classification, including for determining eligibility for prepaid health care pursuant to chapter 393, Hawaii Revised Statutes; and
(6) If an internet or application-based company contributes to a portable health care benefit plan for the benefit of an individual beneficiary:
(A) The contribution shall not be evidence of employer liability; and
(B) A court shall not construe the contribution as an element of an employment relationship for the purposes of:
(i) Employment security benefits pursuant to chapter 383, Hawaii Revised Statutes;
(ii) Workers' compensation pursuant to chapter 386, Hawaii Revised Statutes; or
(iii) Temporary disability insurance pursuant to chapter 392, Hawaii Revised Statutes.
(c) The department may adopt rules pursuant to chapter 91, Hawaii Revised Statutes, to carry out the purposes of this Act.
(d) The department, in consultation with the insurance commissioner, shall submit annual reports on the development and implementation of the nontraditional workforce portable health care benefit plan pilot program established pursuant to this section, including impacts to statewide health insurance enrollment, health care costs and affordability, health outcomes, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular sessions of 2027, 2028, 2029, and 2030.
(e) The department, in consultation with the insurance commissioner, shall submit a final report on the nontraditional workforce portable health care benefit plan pilot program established pursuant to this section, including impacts to statewide health insurance enrollment, health care costs and affordability, health outcomes, recommendations on whether the pilot program should be extended or made permanent, and any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2031.
(f) For the purposes of this section:
"Catastrophic plan" has the same meaning as defined in title 42 United States Code section 18022(e).
"Department" means the department of labor and industrial relations.
"Health savings account" has the same meaning as defined in title 26 United States Code section 223(d).
"High deductible health plan" has the same meaning as defined in title 26 United States Code section 223(c)(2).
"Hiring party" means a person who hires or enters into a contract for services with a nontraditional worker. "Hiring party" includes the State, any of its political subdivisions, or any instrumentality of the State or its political subdivisions. "Hiring party" does not include:
(1) The Unites States government or any instrumentality of the United States;
(2) Any other state or political subdivision thereof or instrumentality of such state or political subdivision;
(3) Any foreign government or instrumentality wholly owned by a foreign government; provided that:
(A) The service performed in its employ is of a character similar to that performed in foreign countries by employees of the United States government or of an instrumentality thereof; and
(B) The United States Secretary of State has certified or certifies to the United States Secretary of the Treasury that the foreign government, with respect to whose instrumentality exemption is claimed, grants an equivalent exemption with respect to similar service performed in the foreign country by employees of the United States government and of instrumentalities thereof.
"Nontraditional worker" means a person who performs a service for hire for a hiring party pursuant to a contract but is not an employee, as defined in section 87A-1, Hawaii Revised Statutes, or a regular employee as defined in section 393-3, Hawaii Revised Statutes, and is not eligible for health benefits under chapter 87A, Hawaii Revised Statutes, or a prepaid health care plan under chapter 393, Hawaii Revised Statutes; provided that "nontraditional worker" does not include a person employed in seasonal employment, as defined in section 393-3, Hawaii Revised Statutes. "Nontraditional worker" includes independent contractors, including gig workers; part-time employees; sole proprietors; and self-employed individuals.
"Portable health care benefit plan" means a group health care plan that:
(1) Offers a high deductible health plan or catastrophic plan in accordance with federal law;
(2) Offers at least one health savings account-eligible plan option in accordance with federal law; and
(3) Is assigned to an individual beneficiary and is not associated with a specific employer or hiring party.
(g) The nontraditional workforce portable health care benefit plan pilot program shall cease to exist on June 30, 2031.
SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 for the development and implementation of the nontraditional workforce portable health care benefit plan pilot program established by section 2 of this Act.
The sum appropriated shall be expended by the department of labor and industrial relations for the purposes of this Act.
SECTION 4. If this Act or any provision of this Act conflicts at any time with any federal law, then the federal law shall prevail and this Act or the relevant provisions of this Act shall become ineffective and invalid. The ineffectiveness and invalidity of this Act or any of its provisions shall not affect any other provisions or applications of this Act, which shall be given effect without the invalid provision or application, and to this end, the provisions of this Act are severable.
SECTION 5. If any part of this Act is found to be in conflict with federal requirements that are a prescribed condition for the allocation of federal funds to the State or the State's eligibility for federal waiver programs, the conflicting part of this Act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this Act in its application to the agencies concerned.
SECTION 6. This Act shall take effect on July 1, 2026.
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INTRODUCED BY: |
_____________________________ |
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Report Title:
DLIR; Insurance Commissioner; Nontraditional Workforce; Portable Health Care Benefits; Voluntary Pilot Program; High Deductible Health Plan; Catastrophic Health Plan; Health Savings Account; Reports; Appropriation
Description:
Requires the Department of Labor and Industrial Relations, in consultation with the Insurance Commissioner, to establish and implement a five-year voluntary Nontraditional Workforce Portable Health Care Benefit Plan Pilot Program that offers high deductible health plans or catastrophic health plans to nontraditional workers who are ineligible for health benefits provided by the Hawaii Employer-Union Health Benefits Trust Fund or prepaid health care plans under the Prepaid Health Care Act. Requires reports to the Legislature. Appropriates funds.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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Date
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Status
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| Mar 20, 2026 | Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with none voting aye with reservations; Representative(s) Shimizu voting no (1) and Representative(s) Quinlan excused (1). |
| Mar 20, 2026 | Reported from LAB (Stand. Com. Rep. No. 1263-26) as amended in HD 1, recommending passage on Second Reading and referral to CPC. |
| Mar 17, 2026 | The committee on LAB recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 5 Ayes: Representative(s) Sayama, Lee, M., Garrett, Kapela; Ayes with reservations: Representative(s) Kong; Noes: none; and 1 Excused: Representative(s) Reyes Oda. |
| Mar 12, 2026 | Bill scheduled to be heard by LAB on Tuesday, 03-17-26 9:30AM in House conference room 309 VIA VIDEOCONFERENCE. |
| Mar 12, 2026 | Referred to LAB, CPC, FIN, referral sheet 17 |
| Mar 12, 2026 | Pass First Reading |
| Mar 10, 2026 | Received from Senate (Sen. Com. No. 164) in amended form (SD 1). |
| Mar 10, 2026 | Report adopted; Passed Third Reading. Ayes, 25; Aye(s) with reservations: none . Noes, 0 (none). Excused, 0 (none). Transmitted to House. |
| Mar 6, 2026 | One Day Notice 03-10-26. |
| Mar 6, 2026 | Reported from WAM/CPN (Stand. Com. Rep. No. 2988) with recommendation of passage on Third Reading. |
| Mar 3, 2026 | The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The votes in WAM were as follows: 12 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella. |
| Mar 3, 2026 | The committee(s) on CPN recommend(s) that the measure be PASSED, UNAMENDED. The votes in CPN were as follows: 3 Aye(s): Senator(s) Keohokalole, Fukunaga, McKelvey; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Lamosao, Awa. |
| Feb 27, 2026 | The committee(s) on WAM/CPN will hold a public decision making on 03-03-26 10:16AM; Conference Room 211 & Videoconference. |
| Feb 6, 2026 | Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM/CPN. |
| Feb 6, 2026 | Reported from LBT (Stand. Com. Rep. No. 2117) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM/CPN. |
| Jan 28, 2026 | The committee(s) on LBT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in LBT were as follows: 5 Aye(s): Senator(s) Elefante, Lamosao, Ihara, Moriwaki, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none. |
| Jan 23, 2026 | The committee(s) on LBT has scheduled a public hearing on 01-28-26 3:00PM; Conference Room 225 & Videoconference. |
| Jan 22, 2026 | Referred to LBT, WAM/CPN. |
| Jan 21, 2026 | Introduced and passed First Reading. |
| Jan 14, 2026 | Pending Introduction. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Mar 17, 2026 | The committee on LAB recommend that the measure be PASSED, WITH AMENDMENTS | House Standing Committee on Labor |
Passed |
|
| Mar 10, 2026 | Third Reading | Senate Floor |
Passed |
|
| Mar 3, 2026 | The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED | Senate Standing Committee on Ways and Means |
Passed |
|
| Mar 3, 2026 | The committee(s) on CPN recommend(s) that the measure be PASSED, UNAMENDED | Senate Standing Committee on Commerce and Consumer Protection |
Passed |
|
| Jan 28, 2026 | The committee(s) on LBT recommend(s) that the measure be PASSED, WITH AMENDMENTS | Senate Standing Committee on Labor and Technology |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Department of Labor and Industrial Relations | *** Against | Mar 17, 2026 |
| Hawaii Medical Association | *** Support | Mar 3, 2026 |
| Hawaii Primary Care Association | *** Support | Mar 17, 2026 |
| University of Hawaii Professional Assembly | *** Support | Mar 17, 2026 |
STAND. COM. REP. NO. 2988
Honolulu, Hawaii
RE: S.B. No. 2088
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Sir:
Your Committees on Ways and Means and Commerce and Consumer Protection, to which was referred S.B. No. 2088, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO HEALTH CARE PLANS FOR WORKERS,"
beg leave to report as follows:
The purpose and intent of this measure is to preserve affordable access to essential medical services for nontraditional workers.
Specifically, this measure:
(1) Requires the Department of Labor and Industrial Relations, in consultation with the Insurance Commissioner, to establish a five-year voluntary Nontraditional Workforce Portable Health Care Benefit Plan Pilot Program to offer high-deductible health plans or catastrophic health plans to workers not covered by the Hawaii Employer-Union Health Benefits Trust Fund or the Prepaid Health Care Act; and
(2) Appropriates moneys to develop and implement the Nontraditional Workforce Portable Health Care Benefit Plan Pilot Program.
Your Committees received written comments in support of this measure from the Hawaii Primary Care Association and Hawaii Medical Association.
Your Committees received written comments on this measure from the Insurance Division of the Department of Commerce and Consumer Affairs, University of Hawaii Professional Assembly, and Hawaii Medical Service Association.
Your Committees find that certain nontraditional workers, including certain part-time employees, independent contractors, and self-employed individuals, who constitute a growing portion of Hawaii's workforce, rely on private or federally subsidized health insurance. Your Committees further find that the passage of the federal "One Big Beautiful Bill Act," Public Law 119-21, may jeopardize the ability of these workers to obtain affordable health insurance through federal programs such as Medicaid. Accordingly, this measure establishes a health insurance framework for these nontraditional workers to continue to have affordable access to essential medical services.
As affirmed by the records of votes of the members of your Committees on Ways and Means and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2088, S.D. 1, and recommend that it pass Third Reading.
Respectfully submitted on behalf of the members of the Committees on Ways and Means and Commerce and Consumer Protection,
|
________________________________ JARRETT KEOHOKALOLE, Chair |
|
________________________________ DONOVAN M. DELA CRUZ, Chair |
|
|
|
|
STAND. COM. REP. NO. 2117
Honolulu, Hawaii
RE: S.B. No. 2088
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2026
State of Hawaii
Sir:
Your Committee on Labor and Technology, to which was referred S.B. No. 2088 entitled:
"A BILL FOR AN ACT RELATING TO HEALTH CARE PLANS FOR WORKERS,"
begs leave to report as follows:
The purpose and intent of this measure is to:
(1) Require the Department of Labor and Industrial Relations, in consultation with the Insurance Commissioner, to establish and implement a five-year voluntary Nontraditional Workforce Portable Health Care Benefit Plan Pilot Program that offers high deductible health plans or catastrophic health plans to nontraditional workers who are ineligible for health benefits provided by the Hawaii Employer-Union Health Benefits Trust Fund or prepaid health care plans under the Prepaid Health Care Act;
(2) Require the Department to submit annual reports to the Legislature on the Pilot Program; and
(3) Appropriate funds.
Your Committee received testimony in support of this measure from the Hawaii Primary Care Association, Hawaii Medical Association, and two individuals.
Your Committee received testimony in opposition to this measure from the Department of Labor and Industrial Relations.
Your Committee received comments on this measure from the Insurance Division of the Department of Commerce and Consumer Affairs, University of Hawaii Professional Assembly, and Hawaii Medical Service Association.
Your Committee finds that nontraditional workers, who are not covered by the Prepaid Health Care Act and therefore have to rely on private or federally-subsidized health insurance, may be subject to reduced access to affordable health insurance as a result of the passage of Public Law 119-21, also known as the One Big Beautiful Bill Act of 2025. Your Committee further finds that it is necessary to establish a health insurance framework for nontraditional workers in the State to safeguard their affordable access to essential medical services. Accordingly, this measure establishes a pilot program that offers high deductible health plans or catastrophic health plans to workers not covered by the Hawaii Employer-Union Health Benefits Trust Fund or the Prepaid Health Care Act.
Your Committee has amended this measure by:
(1) Inserting an effective date of January 1, 2077, to encourage further discussion; and
(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.
As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2088, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2088, S.D. 1, and be referred to your Committees on Ways and Means and Commerce and Consumer Protection.
Respectfully submitted on behalf of the members of the Committee on Labor and Technology,
|
|
|
________________________________ BRANDON J.C. ELEFANTE, Chair |
|
|
|
|
|
Date
|
Testimony PDF
|
|---|---|
| Mar 17, 2026 | SB2088_SD1_TESTIMONY_LAB_03-17-26_.PDF |
| Mar 3, 2026 | SB2088_SD1_TESTIMONY_WAM-CPN_03-03-26_.PDF |
| Jan 28, 2026 | SB2088_TESTIMONY_LBT_01-28-26_.PDF |
Discussed in Hearing
4MIN
House Standing Committee on Labor
5MIN
Senate Standing Committee on Labor and Technology
Bill Author
Bill Co-Author(s):
