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Bill

HB 1092

RELATING TO MEDICAID THIRD PARTY LIABILITY.

2026 Regular Session Introduced by Nadine Nakamura

HB 1092 modifies Hawaii Medicaid's third-party liability recovery procedures to improve cost collection from insurance companies and responsible parties when they should cover medical expenses.

Carried over to 2026 Regular Session.
#medicaid #statemedicalassistanceprogramclaims #thirdpartyliability
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Bill Summary · HB 1092

Legislative bill overview

HB 1092 addresses how Hawaii's Medicaid program handles third-party liability—the process of recovering healthcare costs from insurance companies, employers, or other responsible parties when Medicaid covers medical expenses. The bill modifies existing procedures for identifying and collecting payments from these third parties to improve program efficiency and cost recovery.

Why is this important

Medicaid third-party liability recovery directly affects program sustainability and state budget pressures. Stronger recovery mechanisms can reduce Medicaid costs, potentially freeing funds for other healthcare needs or lowering state expenditures. However, how aggressively these collections are pursued impacts beneficiaries, healthcare providers, and insurers in concrete ways.

Potential points of contention

  • Beneficiary burden: Stricter liability collection could increase out-of-pocket pressures on low-income Medicaid recipients if collection practices become more aggressive
  • Provider relationships: Healthcare providers may face administrative burden or complications if Medicaid's billing and recovery procedures become more complex
  • Cost-shifting concerns: Unclear whether the bill creates perverse incentives that shift costs between payers or creates duplicative billing requirements

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

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