The legislation seeks to amend Chapter 386 of the Hawaii Revised Statutes by establishing specific deadlines for payments and introducing penalties for late payments. If an insurer or employer fails to pay within the designated timeframe, they face a penalty which includes an increase of ten percent on the overdue amount along with accruing interest. However, certain exceptions exist, such as when the employee is a government worker, implicating a necessity to balance prompt payments with accountability on the part of the insurers.
Summary
House Bill 83, introduced in the Thirty-Second Legislature of Hawaii, aims to provide clearer guidelines concerning the payment of medical expenses under the state's workers' compensation system. The bill mandates that insurers or self-insured employers must settle written bills and reports related to workers' compensation claims within sixty days of receipt. This measure is intended to facilitate more timely payments to medical providers, thereby supporting the care of injured workers.
Contention
Although there are no publicized points of contention in the snippets provided, the introduction of strict deadlines and penalties may provoke varied reactions from stakeholders. Proponents of the bill might argue it is a much-needed step towards protecting providers and ensuring injured employees receive timely care. However, concerns may arise regarding the financial implications for insurers and how effectively they can contest claims they perceive as unreasonable or unnecessary, given the tight deadlines.
Further_details
The bill also allows providers to contest the billed amounts, requiring them to request a second review within ninety days if they dispute the payment. This legislative measure outlines the roles and responsibilities surrounding payment processes, contributing to a structured approach to handling disputes in workers' compensation billing, ensuring both clarity and accountability in the handling of claims.