Bill > HB1698

This bill requires health insurance carriers, which are entities like insurers and health maintenance organizations, to accept a patient's written authorization, known as an "assignment of benefits," to pay for substance use disorder treatment services directly to the provider. It explicitly prohibits insurance contracts from including clauses that prevent or restrict this assignment, making such clauses unenforceable. The bill empowers the Insurance Commissioner to create rules and take action to ensure compliance, and mandates the commissioner to publish an annual report on these efforts. Furthermore, if an insurer denies payment despite a valid assignment, the treatment provider can sue to force payment and may be awarded damages, interest, and legal fees. Violations are considered unfair business practices, and insurers must provide an explanation of benefits to the assigned provider upon request, with failure to do so being a violation of state insurance law. This applies to most fully insured health plans in the state, with exceptions for certain self-funded employer plans regulated by federal law.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1698&year=2026