STAND. COM. REP. NO. 670-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1546

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1546, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH INSURANCE,"

begs leave to report as follows:

The purpose of this measure is to establish a three-year pilot program within the Department of Human Services, in consultation with the Department of Commerce and Consumer Affairs, to assist individuals who have lost their Medicaid insurance coverage and do not qualify for employer-sponsored insurance under the Hawaii Prepaid Health Care Act.

Your Committee received testimony in support of this measure from the University of Hawaiʻi System; State Health Planning and Development Agency; Executive Office on Aging; Hawaiʻi Psychological Association; Hawaiʻi Alliance of Nonprofit Organizations; Indivisible Hawaiʻi; Hawaii Medical Association; Hawaii Academy of Family Physicians; Hawaiʻi Primary Care Association; Catholic Charities Hawaiʻi; Hawaiʻi Community Foundation; and numerous individuals. Your Committee received testimony in opposition to this measure from two individuals. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs and Department of Human Services.

Your Committee finds that developments at the federal level will fundamentally alter the State's Medicaid program by shifting certain existing Medicaid recipients to the uninsured population. Among other things, new federal laws or policies will:

(1) Prohibit the use of federal matching funds for health care services to immigrants not lawfully present under federal law, effective October 1, 2026;

(2) Establish work or volunteer requirements for all Medicaid recipients of at least eighty hours per month, effective December 31, 2026; and

(3) Require determinations for every Medicaid recipient every six months, also effective December 31, 2026.

As a result, it is expected that the uninsured population in the State will at least double within two or three years if no action is taken. This measure will ensure that persons who lose Medicaid coverage and lack access to affordable alternative insurance options have access to health care services through the assistance provided in this three-year pilot program.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1546, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

SCOT Z. MATAYOSHI, Chair