Bill

Bill > SB1645


HI SB1645

HI SB1645
Relating To Insurance.


summary

Introduced
01/23/2025
In Committee
01/27/2025
Crossed Over
Passed
Dead

Introduced Session

2025 Regular Session

Bill Summary

Provides that after 12/31/2025, each new or renewed contract between a mutual benefit society and a physician for a fee for service plan shall provide for: (1) The reimbursement of the physician's increased overhead costs, cost of living increases, and increased costs caused by inflation; and (2) An increase of 10% in the reimbursement rate of services after each 5-year period that the physician is in service.

AI Summary

This bill modifies Hawaii's insurance law to require that after December 31, 2025, any new or renewed contract between a mutual benefit society (a type of health insurance organization) and a physician under a fee-for-service plan must include two key provisions: First, the contract must reimburse physicians for increased overhead costs, cost of living adjustments, and inflation-related expense increases. Second, the contract must provide for a 10% increase in the reimbursement rate for services every five years that the physician remains in service. The bill aims to ensure that physicians are fairly compensated over time by accounting for rising operational costs and providing a guaranteed periodic increase in their service reimbursement rates. The legislation will take effect immediately upon approval and does not impact any rights, duties, penalties, or proceedings that were established before its effective date.

Committee Categories

Health and Social Services

Sponsors (1)

Last Action

Carried over to 2026 Regular Session. (on 12/08/2025)

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