The Employer Union Health Benefits Trust Fund, which operates government health insurance in Hawaii, is in danger of becoming insolvent, the Associated Press reports. Hawaiian governor Linda Lingle has reached out to lawmakers, requesting that they restructure management of the trust and reduce the health benefits of public employees.
After raising health care premiums by 24 percent last year, the trustees of the EUTF have refused to increase health care premiums to 26 percent, resulting in a state loss of more than $1 million per month. Labor union leaders have suggested that the state provide the funds to keep the trust solvent, but Lingle has proposed measures such as creating a minimum health care benefits plan and making life insurance optional, the AP reports.
In a letter to lawmakers, Lingle wrote,”I cannot stress enough to you that you have the authority and the responsibility to stop the collapse of the EUTF (Employer Union Health Benefit Trust Fund) system,” reports the Honolulu Advertiser.
Hawaii’s dilemma highlights the growing financial difficulties that government-funded health plans face in the current economy. Under Lingle’s proposals, employees would face higher health insurance premiums and life insurance would be optional. Many consumers benefit from individual life insurance policies, which may provide lower premiums than employee-based policies.
