Hawaii Prepaid Health Care Act

Lucky we live Hawaii. We have year-round sun, surf, and the Hawaii Prepaid Health Care Act. This 1974 state law requires private employers in the state to provide health insurance for their employees who work 20 hours or more a week for four weeks in a row (with some exceptions). 

Employers may pay the entire cost of the health insurance premium or share the cost with their employees. Except for certain union agreements, the law requires employers to contribute at least half of the premium cost for single coverage. The employee must contribute the rest, as long as the employee's share is not more than 1.5 percent of their wages. 

Here's an example: Malia works 40 hours a week. Her monthly paycheck is $1,733. Her health insurance costs $300 a month. Half of that amount is $150 and 1.5 percent of her salary is $26. According to the law, Malia pays the lesser of the two amounts – $26. Her employer pays the rest. 

Prepaid Health Care Act

What does this mean for you? You probably pay less for health care coverage on average than people on the Mainland because your employer pays for most of your health insurance premium.

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