STAND. COM. REP. NO. 2967

Honolulu, Hawaii

RE: S.B. No. 2431

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 Ways and Means, to which was referred S.B. No. 2431, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH SAVINGS ACCOUNTS,"

begs leave to report as follows:

The purpose and intent of this measure is to expand affordable health coverage options in the State.

More specifically, this measure:

(1) Establishes a tiered, nonrefundable tax credit for qualified insurers offering federally qualified health savings account-eligible high deductible health plans in the State, with enhanced incentives for plans written for residents in rural and medically underserved areas; and

(2) Requires qualified insurers to match up to a certain amount of a policyholder's first-time contribution into a health savings account.

Your Committee received written comments on this measure from the Department of Labor and Industrial Relations, Department of Taxation, Aloha Independent Living Hawaii, and Hawaii Medical Association.

Your Committee finds that recent changes at the federal level will result in the loss of Medicaid coverage for many of the State's residents, causing many policyholders to transition between public, employer-sponsored, and individual insurance plans. Your Committee also finds that, during periods in which a great number of policyholders transition between insurance plans, commercial health insurance prices spike and often become unaffordable. Your Committee believes that federally qualified health savings-account eligible high deductible health plans, when paired with health saving accounts, will offer an affordable, flexible, and portable coverage option.

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. 2431, S.D. 1, 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