Senate approves high-deductible plans in insurance bill

HONOLULU (AP) - Hawaii lawmakers have approved legislation that would allow employers to offer employees a high-deductible health insurance plan that's paired with a savings account.

The Honolulu Star-Advertiser reports high-deductible plans haven't been allowed in Hawaii's insurance market, and some say the bill approved by a Senate committee last week would create health insurance plans that are financially risky.

Individuals covered under high-deductible plans would have to pay at least $1,300 in medical costs annually before coverage kicks in. They could also end up paying thousands more in out-of-pocket expenses annually.

The plans come with a health savings account that's expected to cover the deductible and any other medical costs throughout the year.

The legislation was introduced on behalf of University Health Alliance.

It's been supported by some employers and opposed by local unions.