Bill > HB1275

This bill modifies Hawaii's existing health insurance claim payment regulations by replacing interest charges with a structured late fee system for health insurers, mutual benefit societies, and health maintenance organizations that fail to pay provider claims within specified time limits. The new fee schedule varies based on the type of claim (uncontested or contested), the method of filing (written or electronic), and the duration of the payment delay. For uncontested claims filed in writing, late 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 slightly different time frames. The bill caps total late fees at 15% of the original claim amount and allows the insurance commissioner to waive fees in cases of major disasters or unexpected computer system failures. The legislation aims to incentivize timely claims processing by imposing financial penalties on insurers who delay payments to healthcare providers, with the fees automatically added to the unpaid claim amount. The bill is set to take effect on July 1, 2025, and does not retroactively affect claims or proceedings that began before its effective date.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1275&year=2026