STAND. COM. REP. NO. 1263-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2088

S.D. 1

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 Labor, to which was referred S.B. No. 2088, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH CARE PLANS FOR WORKERS,"

begs leave to report as follows:

The purpose of this measure is to 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 certain nontraditional workers.

Your Committee received testimony in support of this measure from the Hawaiʻi Primary Care Association; University of Hawaii Professional Assembly; and Hawaii Medical Association. 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 Department of Commerce and Consumer Affairs; Hawaii Medical Service Association; and Hawaii Association of Health Plans.

Your Committee finds that a growing share of Hawaii's workforce consists of nontraditional workers, including part-time employees, gig workers, and independent contractors, who do not qualify for employer-sponsored prepaid health care and therefore face limited access to affordable insurance. Your Committee further finds that the potential reduction of federally subsidized health coverage, including Medicaid, could significantly increase the number of uninsured residents and threaten both individual well-being and statewide economic stability. This measure addresses these concerns by creating a voluntary portable health care benefit plan pilot program that offers essential, affordable coverage options tailored to nontraditional workers.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2088, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2088, S.D. 1, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Labor,

____________________________

JACKSON D. SAYAMA, Chair