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Who Qualifies for PHC? (Prepaid Health Care)

If you live in Hawaii, work more than twenty hours, and you exceed a certain earnings threshold, you are eligible for prepaid health care coverage. If you are eligible, your employer must provide you with coverage at the earliest enrollment date offered by their current health care contractor. 

If you are interested in learning more about the rules of prepaid health care plans, continue reading.

Prepaid Health Care In Hawaii

The Hawaii Prepaid Health Care Act of 1974 requires private employers to provide health insurance for employees who work at least 20 hours each week. There are some exceptions to this law, primarily that State, Federal, and County employees do not require coverage. If an employer does not provide eligible employees with coverage, they may be subject to penalties and fees.

How To Qualify For Prepaid Health Care

If you aren’t a worker in one of the excluded groups, you can receive prepaid health care coverage. All you need to do is find a qualifying job that offers you more than twenty hours of work per week for four consecutive weeks.

Who Is Excluded From Prepaid Health Care

Not every full-time employee is eligible for prepaid health care coverage. According to Section 393-5 of the law, the following groups are excluded from prepaid health care coverage:

  • People who work less than 20 hours a week
  • Federal, State, and County employees
  • Agricultural seasonal workers
  • Insurance and real estate salespeople who are paid solely by commission
  • Individuals working for direct relatives, such as children or spouses
  • Children under age 21 working for their parents
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How Can You Get Prepaid Health Care Coverage?

If you are an employer who thinks they need to purchase a prepaid health care plan in Hawaii, you can shop for plans with a local insurance agent. They will help you find an approved health care plan that is offered by a health care contractor in your area. If necessary, they can also walk you through the process of adopting a self-insured health care plan to fulfill your insurance obligation.

The Premium Supplementation Fund

The Prepaid Health Care Premium Supplementation Fund was also created in 1974 as a means of helping employers with less than eight employees afford their required prepaid health care plans. To qualify for premium supplementation, employers must meet certain criteria that are dictated by the law. This fund can also reimburse employees of bankrupt employers for their health care costs. To learn more about the Premium Supplementation Fund and its rules, contact an insurance professional.

Buy Coverage For Your Company

Are you an employer who needs prepaid health care insurance in Hawaii? Contact Proinsurance Hawaii to start comparing plans in your area. Our knowledgeable team can help you pinpoint the perfect policy for your employees. Give us a call at 808-735-0106.