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GM 1232

Informing the Legislature that on June 24, 2026, the Governor signed the following bill into law: HB1509 HD2 SD1 CD1 (ACT 131).

2026 Regular Session

Hawaii requires timely transmission, receipt, and responses to workers’ treatment plans, with 10-day deadlines and penalties for delays or frivolous denials.

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Bill Summary · GM 1232

Overview

  • Bill: HB1509 HD2 SD1 CD1 (ACT 131)
  • Jurisdiction: Hawaii
  • Session/Date: 2026; signed into law June 24, 2026
  • Purpose: To modify workers’ compensation procedures related to the transmission, acceptance, and contest of treatment plans between physicians, employers, and the state director.

Main purpose and intent

  • Streamline and formalize how treatment plans for injured workers are transmitted from physicians to employers.
  • Establish timelines and penalties to ensure timely employer responses to treatment plans.
  • Create consequences for delays or frivolous denials of treatment plans, including potential cost-shifting penalties.

Key provisions and changes

  • Transmission of treatment plans:

    • Physicians may transmit treatment plans to employers by mail, facsimile, or secure electronic means.
    • Plans must be sent to an address or facsimile number provided by the employer.

  • Receipt and acceptance process:

    • A treatment plan is deemed received when transmitted with reasonable evidence of receipt.
    • Employers must file a response to the treatment plan with the director within 10 days after receipt.
    • Response must indicate acceptance or objection to the treatment plan, and be filed by secure electronic means.

  • Penalties for non-response:

    • If an employer fails to file a response within the 10-day period, a fine of $1,000 applies unless good cause for the delay is shown.

  • Deemed acceptance and objections:

    • If an employer does not file an objection, or provide the required supporting documentation within 10 days, the treatment plan is deemed accepted.
    • Employers may still object after acceptance if new documentary medical evidence supporting the denial arises.

  • Cost-shifting penalties for improper denial:

    • If the director finds that an employer denied a treatment plan without reasonable grounds, frivolously, or primarily to delay, the employer may owe costs (including reasonable attorneys’ fees) to the injured employee, or to any authorized representative, billing agent, or health care provider acting on behalf of the employee.
    • The director has authority to enforce these penalties.

  • Effective date and applicability:

    • Effective July 1, 2026.
    • The act does not affect rights, duties, penalties, or proceedings that matured or began before the effective date.

Who/what is affected

  • Injured employees seeking workers’ compensation treatment.
  • Physicians prescribing or transmitting treatment plans.
  • Employers subject to Hawaii’s workers’ compensation system.
  • The director (administrative enforcement role) responsible for processing plans, decisions, and penalties.
  • Attorneys and health care providers involved in contesting treatment plans.

Procedural and timeline aspects

  • Transmission timeline: Treatment plans may be sent via mail, fax, or secure electronic means; must target employer-provided contact details.
  • Receipt timing: Receipt is deemed upon transmission with evidence of receipt.
  • Employer response deadline: 10 days from receipt to file acceptance or objection.
  • Penalty trigger: Non-response within 10 days triggers a $1,000 fine (absent good cause).
  • Post-acceptance considerations: Objections can be raised if new medical evidence emerges after acceptance.
  • Remedies for improper denial: Penalties may include costs borne by the employer if denial was without reasonable cause or merely for delay.
  • Sunset/continuity: Applies to conduct occurring on or after July 1, 2026.

Notable details

  • The bill codifies methods of transmission and evidence of receipt.
  • It creates a clear enforcement pathway for delays and frivolous denials.
  • It emphasizes timely communication between physicians, employers, and the director to resolve treatment plans in a more structured manner.

Compiled from official sources — confirm details with the bill’s official record.

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