What Is Prepaid Health Care?
Prepaid health care plans are group health plans that must be purchased for employees in Hawaii. There are many different plans available, so if you are looking for coverage for your employees, you will need to shop around. Like other group health plans, prepaid health care plans are sponsored by an employer or organization and that company’s members are eligible to enroll in the plan.
Who Pays For Prepaid Health Care In Hawaii?
The costs of prepaid health care plans are typically split between the employer and employee, although some employees may opt to pay the full premiums for their employees. State law requires that employees must not pay a share that is more than 1.5% of their total wages for their insurance.
Here’s How It Works
With a prepaid health insurance plan, you will only have to pay 1.5% of your net salary toward your premiums. If your monthly paycheck is $1,500 you are obligated to pay 1.5% of that amount, or $22.50, for your health insurance coverage. Your employer will cover the remaining premium costs, as mandated by state law.