HI HB1275

Replaces the existing 15% annual interest penalty for late insurance claim payments with a tiered flat fee structure for health insurers, mutual benefit societies, and health maintenance organizations

Establishes late fees of $25 for payments up to 30 days late, $50 for payments 31-60 days late, and $100 or 5% of the amount owed (whichever is greater) for payments more than 60 days late

Applies different timelines based on filing method: electronic claims have a 15-day payment deadline, while written claims have a 30-day deadline before late fees begin accruing

Caps total late fees at 15% of the original claim amount owed to healthcare providers

Allows the insurance commissioner to waive late fees in cases of major disasters or unanticipated major computer system failures, with an effective date of July 1, 2025