STAND. COM. REP. NO. 3688

Honolulu, Hawaii

RE: H.B. No. 1546

H.D. 1

S.D. 2

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 H.B. No. 1546, H.D. 1, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to help certain individuals who have lost Medicaid insurance coverage obtain health insurance.

Specifically, this measure establishes a three-year Health Coverage Continuity Pilot Program to:

(1) Assist individuals who have lost their Medicaid insurance coverage and do not qualify for employer‑sponsored insurance under the Hawaii Prepaid Health Care Act;

(2) Require the Department of Human Services to establish criteria and target eligible individuals;

(3) Authorize the Department of Human Services to contract with a nonprofit health insurer or community-based organization to administer or operate the pilot program;

(4) Authorize the Department of Human Services to issue insurance premium subsidies or vouchers; and

(5) Require the Department of Human Services to issue annual reports for the duration of the program.

Your Committee received written comments in support of this measure from the University of Hawaii, Office of Hawaiian Affairs, Executive Office on Aging, State Health Planning and Development Agency, Catholic Charities Hawaii, Hawaii Community Foundation, Hawaii Medical Association, Hawaii Primary Care Association, Hawaii Psychological Association, and nineteen individuals.

Your Committee received written comments on this measure from the Department of Commerce and Consumer Affairs, Department of Human Services, and Hawaii Association of Health Plans.

Your Committee finds that the number of uninsured individuals and families in Hawaii is expected to increase following the implementation of provisions in Public Law 119-21, informally known as the One Big Beautiful Bill Act, that eliminates access to Medicaid coverage for certain immigrants and adults who do not meet the Act's work and community engagement requirements. Your Committee believes that the pilot program established by this measure will help many such individuals and families maintain access to affordable health care after losing Medicaid coverage by providing financial assistance for marketplace insurance or preventative care subsidies, ensuring continuity of essential health services and reducing financial hardship.

Your Committee has amended this measure by:

(1) Adding an appropriation of an unspecified amount to implement the Health Coverage Continuity Pilot Program; and

(2) Making technical, nonsubstantive amendments for purposes of clarity, consistency, and style.

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 H.B. No. 1546, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1546, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair