Hawaii Proposal Would Subsidize Health Care If Businesses Keep Workers On The Job

[Omaha Steve]

http://www.laborradio.org/node/13117

Submitted by Doug Cunningham on March 15, 2010 - 4:13pm
Printer-friendly versionPrinter-friendly versionSend to friendSend to friend

Hawaii is looking for new ways to encourage job creation and reduce the unemployment rate. Jesse Russell looks at one of the proposals.

Hawaii Governor Linda Lingle is trying to find a unique way to encourage job creation throughout the island state. Currently the unemployment rate is stalled at the highest its been in three decades. Her proposal would provide a subsidy to businesses that would cover half of health care premiums for a year. In exchange, those companies would need to keep those employees on board at full time for at least one year after the health care subsidy expires. If they don’t they would face a fine. Businesses in Hawaii are required by a 1974 law to provide health care for workers who clock 20 hours per week or more. Additionally, the law requires that premium costs to workers can not exceed 1.5 percent of salaries. The unemployment rate in Hawaii is 6.9 percent. The program will be initiated in May and is expected to provide roughly $1600 per qualified worker. Estimates suggest the plan could help save the state $123 million in unemployment.