Agsalud

MEMORANDUM OF OPINION

This case presents two important issues, whether the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. §§ 1001-1381 , preempts Hawaii’s health insurance laws and, if it does, whether it is constitutional.

I

ERISA regulates the administration of private employee benefit and pension plans affecting interstate commerce. Pursuant to its authority under the Commerce Clause, U.S.Const. art. I § 8, Congress established standards concerning disclosure to plan participants, reporting to the federal government, vesting of benefits, funding of plans, and conduct of the managers of plans. In addition, Congress created tax incentives to encourage the adoption of private plans and a federal insurance system to guarantee that beneficiaries would receive their benefits. As part of this scheme, Congress preempted “any and all State laws insofar as they may now or hereafter relate to any employee benefit plan * * *Section 514(a), 29 U.S.C. § 1144 (a). Congress, however, exempted from ERISA’s regulatory provisions benefit plans maintained to comply with “workmen’s compensation laws or unemployment compensation or disability insurance laws.” Section…