By establishing a clear set of late fees, SB1282 intends to incentivize prompt payments from health insurers and similar entities, thereby improving cash flow for healthcare providers. The outlined fees vary according to the length of the delay—$25 for payments up to thirty days late, increasing incrementally to potentially $100 or five percent of the owed amount for claims over sixty days late. This structured approach encourages compliance with existing timelines and aims to alleviate the financial burdens on healthcare providers caused by delayed payments.
SB1282 is a legislative proposal aimed at amending Hawaii Revised Statutes section 431:13-108, which governs the timeliness and penalties related to payment claims by health insurers, mutual benefit societies, and health maintenance organizations. The bill introduces a structured schedule of late fees that health entities must incur if they fail to pay claims to health providers within the designated timeframe. Specifically, the bill delineates fees based on the duration of delay in payment, indicating specifics for both uncontested and contested claims, allowing both written and electronic submission formats.
While supporters might argue that this bill strengthens the rights of healthcare providers and ensures they receive timely payments, there could be points of contention regarding the potential financial burden these late fees impose on health insurers and organizations, especially those operating with tight margins. The bill also includes a provision allowing the commissioner to waive late fees in cases of major disasters or unexpected computer failures, which may raise questions about the appropriate scope of such waivers and the accountability of insurers during emergency situations.