STAND. COM. REP. NO. 2919

Honolulu, Hawaii

RE: S.B. No. 2087

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Commerce and Consumer Protection and Ways and Means, to which was referred S.B. No. 2087, S.D. 1, entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish a three-year Health Coverage Continuity Pilot Program to be administered by the Department of Human Services, in consultation with the Department of Commerce and Consumer Affairs, to subsidize the cost of certain health insurance deductibles for eligible individuals;

(2) Authorize the Department of Human Services to contract with a nonprofit health insurer or community-based organization to operate the Pilot Program; provided that the Department shall allow the operator to access state-backed reinsurance or risk stabilization support for the operation of the Pilot Program;

(3) Require reports to the Legislature; and

(4) Appropriate funds.

Your Committees received testimony in support of this measure from the Department of Health, State Health Planning and Development Agency, University of Hawaiʻi System, Office of Hawaiian Affairs, Catholic Charities Hawaiʻi, Hawaiʻi Psychological Association, Aloha Independent Living Hawaii, Hawaiʻi Primary Care Association, Hawaiʻi Community Foundation, Hawaii Medical Association, and twelve individuals.

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

Your Committees find that recent federal cuts to Medicaid and health insurance premium tax credits may result in loss of health insurance coverage for a significant number of residents of the State. This can disrupt access to critical medication, preventive services, behavioral health care, and treatment for chronic conditions, which may lead to poorer health outcomes and higher costs. Your Committees further find that for those who rely on Medicaid, there are few pathways to affordable replacement coverage. This measure would ensure continuity of access to essential health care and better health outcomes for residents of the State.

Your Committees have amended this measure by:

(1) Inserting language that clarifies that the subsidies for the cost of health insurance deductibles for eligible individuals enrolled in the Pilot Program shall be for certain evidence-based preventive services, screenings, diagnostic tests, counseling, and risk-reduction interventions;

(2) Inserting language that clarifies that the Department of Human Services shall provide excess loss protection up to an annual capped amount in relation to state-backed reinsurance or risk stabilization support during the Pilot Program after an operator's costs exceed a threshold as determined by the Department;

(3) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2087, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 2087, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Ways and Means,

________________________________ DONOVAN M. DELA CRUZ, Chair

________________________________ JARRETT KEOHOKALOLE, Chair