THE SENATE 1028 TWENTY-EIGHTH LEGISLATURE, 2015 ''''2H.D. 1 STATE OF HAWAII S.B. NO C.D. 1 A BILL FOR AN ACT RELATING TO THE HAWAII HEALTH CONNECTOR. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: 1 SECTION 1. The legislature finds that the federal Patient 2 Protection and Affordable Care Act of 2010 (Affordable Care Act) 3 required states to establish health insurance exchanges to 4 connect buyers and sellers of health and dental insurance and 5 facilitate the purchase and sale of federally-qualified health 6 insurance plans and qualified dental plans. The initial intent 7 of the state health insurance exchanges was to reduce the number 8 of uninsured individuals, provide a transparent marketplace, 9 conduct consumer education, and assist individuals in gaining 10 access to assistance programs, premium assistance tax credits, 11 and cost-share reductions. 12 The legislature further finds that, largely due to the 13 success of the Hawaii Prepaid Health Care Act, the State enjoys 14 an overall healthier population, lower uninsured rates, and 15 lower premium costs than mainland states. It is, therefore, 16 imperative that Hawaii's health insurance exchange, known as the 2015-2726 SB1028 CDI SMA-1.doc 1 Page 2 1028 S.B. NO. s.D.~H.D. 1 C.D. 1 1 Hawaii Prepaid Health Care Act to preserve the Prepaid Health 2 Care Act's existing benefits for Hawaii residents. 3 The legislature additionally finds that as of April 21, 4 2015, the connector has experienced a successful open enrollment 5 facilitating more than 37,000 qualified health plan and dental 6 plan selections and 45,000 medicaid enrollees for the 2015 plan 7 year. The legislature also finds that, as part of its initial 8 phase of operation, the connector has benefited from new tax 9 credits available under the Affordable Care Act, including the 10 advanced premium tax credit and small business health insurance 11 tax credit. The combined value of these benefits through 2024 12 is estimated at $505,000,000,which is expected to provide 13 direct financial stimulus to the State, facilitate the expansion 14 of health insurance, and reduce uncompensated health care costs 15 associated with the delivery of medical services to the State's 16 eligible population. 17 The purpose of this Act is to appropriate funds for the 18 operations of the connector. 19 SECTION 2. There is appropriated out of the general 20 revenues of the State of Hawaii the sum of $2,000,000 or so much 2015-2726 SB1028 CD1 SMA-l.doc 2 IllllllUl1111111 Ill11 llliiillll1111111I1Il Ill llllilll Ill1 Ill1dll1111111ll1111111111111111II11 Ill 11111111 lllillllllllIll111 IIII IIIUII llllllllllll Ill Page 3 1028 S.B. NO. s.D.~H.D. 1 C.D. 1 1 thereof as may be necessary for fiscal year 2015-2016 for the 2 operations of the Hawaii health connector. 3 The sums appropriated shall be expended by the department 4 of commerce and consumer affairs for the purposes of this Act. 5 SECTION 3. This Act shall take effect on July 1, 2015. 6 3 1028 S.B. NO. s.D.*H.D. 1 C.D. 1 Report Title: Hawaii Health Connector; Appropriation Description: Appropriates funds for the operations of the Hawaii health connector. (CDl) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. 2015-2726 SB1028 CD1 SMA-l.doc .