SB 1282: RELATING TO HEALTH.

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.

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.