Bill > SB1282

This bill amends Hawaii's insurance regulations to replace the previous system of interest charges with a structured late fee schedule for health insurers, mutual benefit societies, and health maintenance organizations that fail to pay medical providers within specified time limits. The new fee structure applies differently to uncontested and contested claims, both for written and electronic claim filings, with escalating fees based on how late the payment is. For uncontested claims filed in writing, fees range from $25 for payments up to 30 days late, to $50 for payments between 31-60 days late, and either $100 or 5% of the owed amount (whichever is greater) for payments 61 or more days late. Similar tiered fee structures are established for contested claims and electronically filed claims, with slightly different time frames. The bill caps total late fees at 15% of the original amount owed and allows the commissioner to waive fees in cases of major disasters or unexpected computer system failures. The new fee system will take effect on July 1, 2025, and does not apply to rights, duties, penalties, or proceedings that existed before that date.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1282&year=2026