By Stewart Yerton 

The rising cost of healthcare is battering Hawaiʻi employers with soaring costs for health plans covering hundreds of thousands of workers and their families, illustrating the wide-ranging effects of a healthcare system that experts say has become increasingly unsustainable.

After years of single-digit increases in the base rates approved by Hawaiʻi’s insurance regulators, three of the state’s main health insurers received double-digit increases in 2026 for a benchmark health insurance rate and are asking for more for 2027.

That translates into higher costs for employee health plans as open enrollment begins, which has already been showing signs of rippling through the economy.

Hawaiʻi state law requires employers to provide health insurance for employees working at least 20 hours per week and to pay at least 50% of the premium costs, which presents a significant expense, especially for small businesses.

“Every year, it just keeps going up and up,” said Sherry Menor, president and chief executive of the Chamber of Commerce Hawaiʻi. “It’s a major cost driver, and it’s just getting harder and harder for small businesses to pay.”

Approximately 425,000 Hawaiʻi residents are covered by employer plans under the law, according to the Hawaiʻi Insurance Commission.

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