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Hawaii Premium Plus to pay half of health insurance for new hires


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POSTED: Wednesday, May 19, 2010

As owners of a small home construction business in Waimanalo, Ozzy and Shontaz Naweli say one of the primary roadblocks to hiring new workers is the cost of providing health care.

Now the state is jumping in to help.

Under a new program primarily funded by the federal government, the state would pick up roughly half the costs of health insurance premiums for small businesses that hire new workers.

The program, Hawaii Premium Plus, was unveiled yesterday by Gov. Linda Lingle.

“;We don't even want to look at it,”; Shontaz Naweli said of the line in their books that covers health care costs. “;This program is going to help — help a lot.”;

Ozzy Naweli said the company looks forward to being able to add four to five people to his staff of about 10.

“;Me and my wife are really excited about what this health plan is going to be doing for our company,”; he said. “;It's going to pick up a lot of costs so we can hire more people and give homeowners quality work.”;

Lingle said the state received approval from the U.S. Department of Health and Human Services to launch the program May 1 as planned. She first outlined the program in her State of the State speech in January.

The total cost for the program is $10.8 million, with 65 percent of the funds coming from the federal Medicaid program. The state's share is about $3.7 million.

Under the plan, employers would be reimbursed up to $140 per month for each qualified new hire. The $1,680 one-year reimbursement represents roughly half of what it costs a company to provide health insurance for a full-time employee for one year, Lingle said.

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Premium Plus has an enrollment cap of 6,450, which Lingle said is the number of new workers needed to reduce the state's 7 percent unemployment rate by 1 percent.

Employees hired between May 1 and April 30, 2011, can qualify for this program.

In the beginning, the program will be limited to companies with fewer than 50 employees as of the start of 2010. After July 1, if the goal of 6,450 new hires has not been met, the program will be open to larger companies.

“;We think it addresses one of the main reasons people hesitate to bring on a new employee — that's the cost of medical insurance premiums,”; Lingle said. “;We are trying to tip that balance — tip that employer — to make the decision now, when we really need people to get back to work, rather than wait for the economy to get better.”;

House Labor Chairman Karl Rhoads lauded the plan, saying, “;Every little bit helps.”;

But he also wondered whether the amount of reimbursement would be enough to persuade employers to hire new workers if they were not planning to already.

“;I just don't know if it's enough money for an employer to make a decision like that, but it can't hurt anything,”; said Rhoads (D, Kakaako-Downtown). “;It all helps.”;

               

     

 

 

COVERAGE DETAILS

        Under the Hawaii Premium Plus program, businesses that hire new employees would be able to receive reimbursement from the state for half of a new employee's medical insurance premiums for one year.

       

To be eligible, the employer must:

       

» Have no more than 50 staff members in Hawaii as of Jan. 1, 2010 (the program could expand to include larger employers after July 1).

       

» Intend to employ new staff members on a full-time basis (at least 32 hours a week) for a minimum of 24 consecutive months.

       

» Hire eligible employees between May 1, 2010, and April 30, 2011.

       

» Provide new employees with a health insurance plan meeting all requirements of the Hawaii Prepaid Health Care Act.

       

A qualified employee must:

       

» Legally reside in Hawaii and be 18 or older.

       

» Be unemployed for at least six consecutive weeks.

       

» Have received or exhausted unemployment insurance benefits immediately prior to being hired.

       

Further requirements are listed online at premiumplus.hawaii.gov

       

Source: Office of the Governor