RELATING TO HEALTH.

HB1275

HOUSE OF REPRESENTATIVES

H.B. NO.

1275

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to health
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION
1
.
�
Section
431:13-108, Hawaii Revised Statutes, is amended by amending subsection (g) and
(h) to read as follows:

����
"(g)
�
Notwithstanding section 478-2 to the
contrary, [
interest shall be allowed at a rate of fifteen per cent a year
for money owed by an entity on payment of a claim exceeding
]
an entity
who exceeds
the applicable time limitations
for payment of a claim

under this section[
,
]
shall be subject to a late fee
as follows:

����
(1)
�
For an uncontested
claim:

���������
(A)
�
Filed in writing[
,
interest from the first calendar day
]
:

�������������
(i)
�
A
fee of $25 for a payment received up to thirty days
after the thirty-day
period in subsection (b);[
or
]

������������
(ii)
�
A
fee of $50 for a payment received between thirty-one days and sixty days after
the thirty-day period in subsection (b); or

�����������
(iii)
�
A
fee of either $100 or five per cent of the money owed, whichever is greater,
for a payment received sixty-one or more days after the thirty-day period in
subsection (b); or

���������
(B)
�
Filed
electronically[
, interest from the first calendar day
]
:

�������������
(i)
�
A
fee of $25 for a payment received up to thirty days
after the fifteen-day
period in subsection (b);

������������
(ii)
�
A
fee of $50 for a payment received between thirty-one days and sixty days after
the fifteen-day period in subsection (b); or

�����������
(iii)
�
A
fee of either $100 or five per cent of the money owed, whichever is greater,
for a payment received sixty-one or more days after the fifteen-day period in
subsection (b);

����
(2)
�
For a contested
claim filed in writing:

���������
(A)
�
For which notice
was provided under subsection (c)[
, interest from
]
:

�
������������
(i)
�
A
fee of $25 for a payment received up to thirty days after
the first
calendar day thirty days after the date the additional information is received;
[
or
]

������������
(ii)
�
A
fee of $50 for a payment received between the sixty-one calendar days and
ninety calendar days after the date the additional information is received; or

�����������
(iii)
�
A
fee of either $100 or five per cent of the money owed, whichever is greater,
for a payment received one hundred twenty or more calendar days after the date
the additional information is received; or

���������
(B)
�
For which notice
was not provided within the time specified under subsection (c)[
, interest
from the first calendar day
]
:

�
������������
(i)
�
A
fee of $25 for a payment received up to

thirty days
after the claim
is received; [
or
]

������������
(ii)
�
A
fee of $50 for a payment received between thirty-one days and sixty days after
the date the claim is received; or

�����������
(iii)
�
A
fee of $100 either $100 or five percent of the money owed, whichever is
greater, for a payment received sixty-one or more days after the date the claim
is received; or

����
(3)
�
For a contested
claim filed electronically:

���������
(A)
�
For which notice
was provided under subsection (c)[
, interest from
]
:

�������������
(i)
�
A
fee of $25 for a payment received up to thirty days after
the first
calendar day fifteen days after the additional information is received; [
or
]

������������
(ii)
�
A
fee of $50 for a payment received between the forty-six calendar days and
seventy-five calendar day after the date the additional information is
received; or

�����������
(iii)
�
A
fee of either $100 or five per cent of the money owed, whichever is greater,
for a payment received one hundred five or more calendar days after the date
the additional information is received; or

���������
(B)
�
For which notice
was not provided within the time specified under subsection (c)[
, interest
from the first calendar day
]
:

�������������
(i)
�
A fee of $25
for a payment received up to thirty days
after the claim is received[
.
]

������������
(ii)
�
A
fee of $50 for a payment received between thirty-one days and sixty days after
the date the claim is received; or

�����������
(iii)
�
A
fee of either $100 or five per cent of the money owed, whichever is greater,
for a payment received sixty-one or more days after the date the claim is
received.

����
The commissioner may [
suspend
]

waive
the [
accrual of interest
]
payment of any fees
established by this section
if the commissioner determines that the entity's
failure to pay a claim within the applicable time limitations was the result of
a major disaster or of an unanticipated major computer system failure.
�
Total fees for any late payment accrued
under this section shall not exceed fifteen per cent of the original amount of
money owed to the provider.

����
(h)
�

Any [
interest that accrues in a sum of at least $2 on a delayed clean
]

late fee that accrues on a delayed
claim [
in
]
pursuant to

this section shall be automatically added by the entity to the amount of the
unpaid claim due the provider."

����
SECTION
2.
�
This Act does not affect rights and
duties that matured, penalties that were incurred, and proceedings that were
begun before its effective date.

����
SECTION 3.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 4.
�
This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

Health
Insurers; Mutual Benefit Societies; Health Maintenance Organizations; Delayed
Claims; Late Fees

Description:

Establishes
a schedule of late fees to be added to the original unpaid claim amount if a
health insurer, mutual benefit society, or health maintenance organization
fails to pay a provider within the required time.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.