News & Announcements

Small Employers May be Eligible for Health Care Premium Reimbursement

Posted Tuesday, February 13, 2018 6:32 am

The Hawaii Department of Labor and Industrial Relations (DLIR) has received federal funds to help augment the Prepaid Health Care Premium Supplementation Trust Fund (PSF).  The trust fund allows eligible small employers to receive partial reimbursement for health care premiums that have been paid during a business year. 

Section 393-45 of the Prepaid Health Care Act provides information on requirements that small employers must satisfy in order to qualify for a reimbursement.  These requirements include:

  • The employer employs less than eight employees entitled to Prepaid Health coverage.
  • The employer’s health care plan is approved under Section 393-7(a) of the Prepaid Health Care Act.
  • The employer’s share of the premium cost for eligible employees (single coverage only) must exceed 1.5% of the total wages payable to such employees and the amount of the excess must be greater than 5% of the employer’s income before taxes directly attributable to the business.

The reimbursement is only available for plan years beginning January 1, 2017.  In December of 2016, Hawaii was granted a waiver from the Affordable Care Act’s requirement that a Small Business Health Options Program (SHOP) operate in the State and other requirements relevant to SHOP exchanges.  As a result, the federal Small Business Health Care Tax Credit previously available was terminated for plan years beginning after December 31, 2016.  In place of the tax credit, Hawaii will receive federal funds of approximately $2.7 million for plan years beginning January 1, 2017 through December 31, 2021.  The most recent allotment of federal funds was in the amount of $428,864.

For more information on how to apply and obtain a claim form (HC-6), Visit the DLIR website for more information on how to apply and to obtain a Form HC-6 claim form. 

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