Under the Hawaii Prepaid Healthcare Act, covered employers must provide health care coverage to employees who work at least 20 hours per week after four consecutive weeks, and who earn at least 86.67 times the current Hawaii minimum wage per month (as of October 1, 2022, $12.00 per hour x 86.67 = $1,040.04 per month). Eligible employees may waive the mandated coverage by completing the "Employee Notification to Employer" (Form HC-5) every calendar year in certain situations, including:

• Being covered by a federally established health insurance (e.g., Medicare or Medicaid);
• Being covered as a dependent by a qualified plan (e.g., under a spouse's or parent's plan);
• Being a recipient of public assistance and covered by a state-legislated health plan;
• Being covered by their own personal health insurance policy; or
• Being a follower of a religious group that depends on prayer or other spiritual means for healing.

Hawaii's Department of Labor and Industrial Relations Disability Compensation Division revised the Form HC-5 for the 2023 calendar year in September 2022. Employers must ensure their employees who choose to waive health care coverage under Hawaii's Prepaid Health Care Act for 2023 complete the Form HC-5 by December 31, 2022. Employers with employees who waived coverage in 2022 should follow up with these employees to obtain the 2023 form if the employee has not elected to enroll in the employer's medical plan. Also, since the Form HC-5 is only applicable for the stated calendar year, employees who completed a Form HC-5 for 2022 when they became eligible for coverage or during a non-calendar year open enrollment will need to complete the updated version for 2023. Employers must provide a copy of the signed Form HC-5 to the employee, and retain the original signed Form HC-5 for two years.