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