(a) Every employer required to provide coverage for the employer’s employees by a prepaid group health care plan under this chapter shall elect whether coverage shall be provided by:

Terms Used In Hawaii Revised Statutes 393-12

  • Employer: means any individual or type of organization, including any partnership, association, trust, estate, joint stock company, insurance company, or corporation, whether domestic or foreign, a debtor in possession or receiver or trustee in bankruptcy, or the legal representative of a deceased person, who has one or more regular employees in the employer's employment. See Hawaii Revised Statutes 393-3
  • Premium: means the amount payable to a prepaid health care plan contractor as consideration for the contractor's obligations under a prepaid health care plan. See Hawaii Revised Statutes 393-3
  • Prepaid health care plan: means any agreement by which any prepaid health care plan contractor undertakes in consideration of a stipulated premium:

    (1) Either to furnish health care, including hospitalization, surgery, medical or nursing care, drugs or other restorative appliances, subject to, if at all, only a nominal per service charge; or

    (2) To defray or reimburse, in whole or in part, the expenses of health care. See Hawaii Revised Statutes 393-3

  • Prepaid health care plan contractor: means :

    (1) Any medical group or organization which undertakes under a prepaid health care plan to provide health care;

    (2) Any nonprofit organization which undertakes under a prepaid health care plan to defray or reimburse in whole or in part the expenses of health care; or

    (3) Any insurer who undertakes under a prepaid health care plan to defray or reimburse in whole or in part the expenses of health care. See Hawaii Revised Statutes 393-3

(1) A plan which obligates the prepaid health care plan contractor to furnish the required health care benefits; or
(2) A plan which obligates the prepaid health care plan contractor to defray or reimburse the expenses of health care.

The employer’s election is binding for one year.

(b) Whether the employer elects a plan type described in subsection (a)(1) or in subsection (a)(2), the employer may elect the particular contractor but the employee shall not be obligated to contribute a greater amount to the premium than the employee would have to contribute had the employer elected coverage with the contractor providing the prevailing coverage of the respective type in the State.

Subject to the provision of section 393-20, the employer shall provide coverage with the prepaid health care plan contractor selected pursuant to this subsection for all the employer’s employees in the State electing this type of coverage who are covered by the provisions of this chapter, except for employees covered by the health care provisions of an applicable collective bargaining agreement as provided in section 393-19(b) first sentence.

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