HB205 • 2026

RELATING TO WORKERS' COMPENSATION.

Healthcare Labor Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: MATAYOSHI, CHUN, KITAGAWA, LEE, M., MARTEN, SAYAMA, TAKENOUCHI
Last action: 2025-12-08
Official status: Carried over to 2026 Regular Session.
Effective date: Not listed

Plain English Breakdown

The official summary and text do not provide details on the impact of the new payment rates on overall workers' compensation costs, leaving it uncertain.

Setting Payment Limits for Nonprescription Drugs in Workers' Compensation

This bill establishes a payment rate not to exceed cost plus forty percent for nonprescription drugs, over-the-counter drugs, and nonlegend drugs used in workers' compensation cases.

What This Bill Does

Establishes a maximum payment rate of cost plus forty percent for nonprescription drugs, over-the-counter drugs, or nonlegend drugs used in workers' compensation cases.
Requires that these drugs be clinically established as necessary by the provider to treat work injuries before payments are authorized.
Allows providers to seek reimbursement for Hawaii general excise tax on these drugs.

Who It Names or Affects

Workers who receive nonprescription, over-the-counter, or nonlegend drugs through workers' compensation.
Healthcare providers who prescribe and dispense such drugs in workers' compensation cases.

Terms To Know

Nonprescription drug: A medicine that can be bought without a prescription from a doctor.
Over-the-counter drug: A medication available for purchase at retail stores without a prescription.

Limits and Unknowns

The bill does not specify what happens to existing rights and duties that matured before the effective date.
It is unclear how this new payment rate will affect overall workers' compensation costs in Hawaii.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment sets a payment limit of cost plus forty percent for nonprescription, over-the-counter, or nonlegend drugs in workers' compensation cases.

Establishes a maximum reimbursement rate of cost plus forty percent for nonprescription, over-the-counter, and nonlegend drugs used in treating work injuries.
Requires that these drugs be clinically necessary to treat the injured worker before payment can be authorized.

The effective date listed as July 1, 3000 is likely a placeholder or error and should be clarified for actual implementation timing.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-02-06 H
The committee(s) on CPC recommend(s) that the measure be deferred.
2025-02-04 H
Bill scheduled to be heard by CPC on Thursday, 02-06-25 2:00PM in House conference room 329 VIA VIDEOCONFERENCE.
2025-01-30 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Ward excused (2).
2025-01-30 H
Reported from LAB (Stand. Com. Rep. No. 8) as amended in HD 1, recommending passage on Second Reading and referral to CPC.
2025-01-28 H
The committee on LAB recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 6 Ayes: Representative(s) Sayama, Lee, M., Garrett, Kapela, Kong, Reyes Oda; Ayes with reservations: none; Noes: none; and Excused: none.
2025-01-24 H
Bill scheduled to be heard by LAB on Tuesday, 01-28-25 9:00AM in House conference room 309 VIA VIDEOCONFERENCE.
2025-01-21 H
Referred to LAB, CPC, FIN, referral sheet 1
2025-01-16 H
Introduced and Pass First Reading.
2025-01-15 H
Pending introduction.

Official Summary Text

RELATING TO WORKERS' COMPENSATION.
Workers' Compensation; Nonprescription Drugs; Payment Limitation
Establishes a payment rate not to exceed cost plus forty per cent for nonprescription drugs, over-the-counter drugs, or nonlegend drugs for workers' compensation purposes, subject to certain conditions. Effective 7/1/3000. (HD1)

Current Bill Text

Read the full stored bill text

HB205

HOUSE OF REPRESENTATIVES

H.B. NO.

205

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to workers' compensation
.

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

����
SECTION 1.
�
The legislature finds that the State's existing
reimbursement rates for nonprescription drugs, over-the-counter drugs, or
nonlegend drugs for workers' compensation are not clearly provided.
�
The legislature further finds that this
omission has led some to charge inflated rates for these drugs, which drives up
the cost of workers' compensation insurance.

����
Accordingly,
the purpose of this Act is to establish:

����
(1)
�
Payment rates for nonprescription drugs,
over-the-counter drugs, or nonlegend drugs for workers' compensation purposes;
and

����
(2)
�
Requirements for the authorization of such
payments.

����
SECTION
2.
�
Chapter 386, Hawaii Revised Statutes,
is amended by adding a new section to be appropriately designated and to read
as follows:

����
"
�386-
�
Nonprescription, over-the-counter,
nonlegend drug payments.
�
(a)
�

Payment for nonprescription drugs, over-the-counter drugs, or nonlegend
drugs shall be cost plus forty per cent.

����
(b)
�
Payment
shall not be authorized under this section unless the nonprescription drug,
over-the-counter drug, or nonlegend drug has been clinically established as
necessary by the provider, or a duly authorized representative, to treat the
injured employee for a work injury.

����
(c)
�

Providers may seek reimbursement for any applicable Hawaii general
excise tax.

����
(d)
�
For
purposes of this section:

����
"Nonprescription drug",
"over-the-counter drug", or "nonlegend drug", has the same
meaning as provided in section 328-1.

����
"Provider" means the physician
dispensing the nonprescription drug, over-the-counter drug, or nonlegend drug.
"

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SECTION 3.
�
This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.

����
SECTION
4.
�
New statutory material is
underscored.

����
SECTION
5.
�
This Act shall take effect on July 1,
2025.

INTRODUCED BY:

_____________________________

Report Title:

Workers' Compensation; Nonprescription Drugs; Payment
Limitation

Description:

Establishes
a payment rate of cost plus forty per cent for nonprescription drugs,
over-the-counter drugs, or nonlegend drugs for workers' compensation purposes,
subject to certain conditions.

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