COBRA Continuation in Hawaii

When someone loses their job, they may have limited options to keep their health insurance. In Hawaii, most workers at large companies qualify for federal COBRA, which lets them stay on their employer’s plan by paying the full cost. Others may need to explore private health plans through the federal marketplace or a licensed agent.

However, continuation of employer health coverage for ill or incapacitated workers is a state mandate. Hawaii's Prepaid Health Care Act is a protection for employees who are unable to work due to sickness, hospitalization, or a disabling condition. It requires employers to pay their portion of the health insurance cost for up to three months after the month the employee became unable to work.

Continuation Coverage Under Hawaii’s Prepaid Health Care Act

Hawaii's Prepaid Health Care Act requires employers to provide health insurance to eligible employees who work at least 20 hours per week for four consecutive weeks. If an employee becomes sick or is hospitalized and can’t work, the law says the employer must continue to pay for that employee’s health coverage. This must be done for up to three months following the month the employee became unable to work.

This continuation only applies when the employee is not working because of a medical condition. The employer must keep paying their part of the insurance cost during this time, as if the employee were still on the job. The goal of this rule is to make sure people don’t lose their health insurance just because they are too sick to work.

Affordable Alternatives to COBRA in Hawaii

In Hawaii, the average health insurance premium is $583/mo per individual. If COBRA is unavailable or is outside of your budget, here are affordable other options for health coverage.

The cost of health insurance is determined by your age and state of residency.