HB1509 amends Hawaii’s workers’ compensation law governing treatment plans submitted by physicians for injured employees. The bill requires employers to allow treatment plans to be transmitted by mail, facsimile, or secure electronic means, and it establishes that a treatment plan is deemed received when there is reasonable evidence of receipt. Once received, the employer must file an acceptance or objection with the director within 10 days using secure electronic means.
The bill also strengthens the consequences for employer inaction or improper denial. If an employer fails to respond within the 10-day period, the treatment plan is deemed accepted and the employer may be fined $1,000 unless good cause is shown. If an employer denies a treatment plan without reasonable grounds, frivolously, or primarily to delay care, the employer may be liable for costs and reasonable attorneys’ fees incurred by the injured employee or those acting on the employee’s behalf. The act takes effect July 1, 2026, and applies prospectively without disturbing matured rights, penalties, or pending proceedings.
Impact
HB1509 updates Section 386-21.2 of the Hawaii Revised Statutes by modernizing the transmission and response process for workers’ compensation treatment plans and by adding a mandatory electronic response requirement for employers. It removes the prior authorization language tied to mail or facsimile submission and replaces it with a broader secure electronic process, while also codifying a 10-day deadline, a default acceptance rule, a monetary penalty for missed deadlines, and fee-shifting for unreasonable denials. The bill directly affects employers, injured workers, physicians, health care providers, and the Department of Labor and Industrial Relations director’s enforcement role.
Sentiment
The bill appears to have been broadly supported throughout the legislative process, with unanimous or near-unanimous committee votes and no recorded opposition in the provided history. The conference committee and both chambers advanced the measure with amendments, suggesting general agreement on the need to streamline treatment-plan handling and strengthen compliance. The final enactment as Act 131 indicates the measure was ultimately accepted by the Legislature and signed into law.
Contention
The main policy tension in HB1509 is between improving timely access to medical treatment for injured workers and imposing stricter administrative obligations and penalties on employers. Supporters likely viewed the bill as a way to reduce delays, encourage prompt responses, and deter unjustified denials of treatment plans. Potential concerns would center on the shortened 10-day response window, the $1,000 penalty for late responses, and the fee-shifting provision for denials deemed unreasonable or frivolous, which could increase employer liability and administrative burden. The conference amendments suggest some negotiation over the final procedural details, but no explicit opposition is reflected in the available votes or transcripts.