RES 268 Draft 02 2008-2010 - Laserfiche WebLink

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4 1 WHEREAS, many active employees experienced a 23.4% hike in their health care premium contributions effective July 1, 2009 and retirees are slated to face an ; additional hike on January 1, 2010; and , WHEREAS, the state is authorized to establish a captive insurance company under HRS Chapter 431, Article 19; and WHEREAS, according to the state department of commerce and consumer affairs, Hawaii is the fifth largest captive insurance domicile in the world based on the captives' combined capital assets of more than $7 billion and the ninth largest based on the number of captives with 220 licenses issued and 165 active licenses, as of December 31, 2008; and WHEREAS, any captive insurance company created to provide health insurance for state and county employees, retirees, and their dependents should be created by the EUTF; and WHEREAS, it is important that the EUTF look at innovative ways to achieve reasonable costs and coverage for health insurance by reducing or slowing the runaway rate increases that have occurred in the past decade, while maintaining the high level of care expected by public employees and retirees; and WHEREAS, the current status of state and county health insurance is not sustainable and a solution is necessary to lower costs and maintain services; now, therefore, BE IT RESOLVED by the HAWAII STATE ASSOCIATION OF COUNTIES that it urges the Hawaii Employer-Union Health Benefits Trust Fund to examine innovative means of maintaining current health benefits while controlling costs to the state and counties and their employees, including a feasibility study to establish a captive insurance program for health benefits; and BE IT FURTHER RESOLVED that if the feasibility study recommends the creation of a captive health insurance program, the EUTF is urged to conduct a captive health insurance pilot program for one or more counties or implement a captive health insurance program outright for all members; and 2 I I ~