Public workers sue over healthcare plan

By Lynda Arakawa
Advertiser Capitol Bureau

Seven public workers have filed a class-action lawsuit claiming that the new Hawai'i Employer-Union Health Benefits Trust Fund requires thousands of workers to pay more than they need to for health insurance.

The lawsuit, filed Thursday against the 10 trustees of the fund, says the health plan adopted by the trustees offers only individual and family coverage, forcing employees who want to insure only a spouse or one dependent to pay the higher rate for employees with more dependents.

As a result, about 9,000 public workers have paid approximately $100 more per month for coverage than they should have paid, the lawsuit says.

In adopting this plan, the trustees "consciously chose to sacrifice the interests of the plaintiffs and members of the class and to improperly prefer the interests of other beneficiaries," the lawsuit said.

Deputy Attorney General Brian Aburano said he had not yet reviewed the lawsuit and declined to comment.

The Hawai'i Employer-Union Health Benefits Trust Fund was established in 2001 to replace the health plans provided through the public-worker unions. Five trustees represent the state and five trustees represent employee unions. The new health benefit plans began July 1.

The lawsuit is seeking remedies including monetary damages for the class, as well as an order directing the trustees to solicit proposals for healthcare plans with three or more tiers of coverage and select the best one.

Reach Lynda Arakawa at larakawa@honoluluadvertiser.com or 525-8070.