Bill > SB1645

This bill amends Hawaii's insurance laws to require that after December 31, 2025, any new or renewed contract between a mutual benefit society (a type of health insurance provider) and a physician under a fee-for-service plan must include two key provisions. First, the contract must provide reimbursement for the physician's increased overhead costs, cost of living adjustments, and expenses related to inflation. Second, the contract must include an automatic 10% increase in the reimbursement rate for services every five years that the physician remains in service. The purpose of these requirements appears to be protecting physicians from financial stagnation by ensuring their compensation keeps pace with rising costs and recognizing their ongoing professional experience. The bill will take effect immediately upon approval and does not retroactively impact any existing rights, penalties, or legal proceedings that were in place before its effective date.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1645&year=2025