Maui County shifts employee health plan enrollment towards lower-cost options

During a recent meeting of the Maui County Budget, Finance, and Economic Development Committee, significant discussions centered on the Employee Union Trust Fund (EUTF) plan, particularly regarding health insurance enrollment and costs for county employees.

The meeting highlighted a notable shift in employee health plan preferences since February 2016. At that time, nearly half of the employees, 49%, were enrolled in the HMSA 80/20 plan. However, changes in premium structures have led to a marked increase in enrollment in lower-cost plans. The HMSA 75/25 plan, which saw its monthly premium drop from $215 to $54 after adjustments made in February 2017, has now become the most popular choice, with 43% of employees opting for it. The Kaiser standard plan has also gained traction, now accounting for 20% of enrollments.

The county's overall health insurance costs for the fiscal year 2024 are projected at approximately $22.8 million, reflecting a significant increase. This rise is attributed to a recent change in employer contributions, which increased from a cap of 84.3% to 90% for certain plans as of July 1, 2023. This adjustment means that the county is now covering a larger share of costs for the HMSA 75/25 and Kaiser standard plans, resulting in a substantial increase in employer expenses. Conversely, employee costs have decreased from $8.2 million to $7.5 million, indicating a shift in financial responsibility.

The discussions underscored the importance of understanding health plan dynamics and their financial implications for both the county and its employees. As the committee continues to navigate these changes, the focus remains on ensuring that employees have access to affordable healthcare options while managing the county's budget effectively. The meeting concluded with an invitation for questions, signaling ongoing engagement with stakeholders on these critical issues.