Bill > SB1282

This bill amends Hawaii's healthcare insurance payment regulations by replacing the previous interest-based penalty system with a structured late fee schedule for health insurers, mutual benefit societies, and health maintenance organizations that fail to pay medical providers within specified timeframes. The new system imposes graduated late fees based on the type of claim (uncontested or contested) and the method of filing (written or electronic), with fees increasing based on the duration of payment delay. For uncontested claims filed in writing, fees range from $25 for payments up to 30 days late to $100 or 5% of the owed amount for payments over 60 days late. Similar tiered fees apply to electronically filed and contested claims, with slight variations in the time periods. The bill includes a provision allowing the commissioner to waive fees in cases of major disasters or unexpected computer system failures, and caps total late fees at 15% of the original amount owed. The new fee structure aims to incentivize timely claims processing and provide clearer financial consequences for delayed payments. The bill is set to take effect on July 1, 2025, and does not affect rights, duties, or proceedings that existed before its effective date.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1282&year=2025