What are the alternative plan options in Hawaii?
The State oversees the application process when moving from an insured program to a self-insured program. An insured policy must be in place before self-insurance will be granted. If the self-funded alternative is used, the employer must state the location of the claims paying facility. If self-funding, the employer must also submit a copy of their annual financial report. The State may require a surety bond depending upon the employer’s financial status. No employee enrollment is necessary. All employees must be covered by the private insured or self-insured plan provided by the employer (except for government and enumerated special employment situations). Individual employees may not opt out of the plan. Employer payroll records and plan claim records are subject to audit.
