11/15/2007   Hawaii Employees are ineligible

Group employees who are residents of Hawaii are ineligible for coverage through any of our plans. Hawaii is exempt from ERISA due to Provision 29 USC 1144(b)(5)(A), which states that ERISA "shall not apply to the Hawaii Prepaid Health Care Act."

This exemption allows Hawaii to mandate that employers provide health care coverage compliant with the minimum standards of the Prepaid Healthcare Act (Chapter 393 HRS). The Act applies to most employees who are working 20 or more hours per week in non-seasonal positions and whose work either is localized in Hawaii or is not localized, but is partially performed in Hawaii and either based or controlled from Hawaii or who are residents of Hawaii. The Act requires comprehensive health care coverage under a "qualified" health care plan that is approved and licensed by the state. Currently, Regence Plans are considered non-"qualified" prepaid health plan contractors, and therefore are unable to cover Hawaii residents.

If you're interested in learning more about this topic, please talk to your Regence Sales contact.

« Back to Communications