April 2, 1999

Thirty-three states have laws to ensure that claims filed by physicians and/or patients are paid promptly by health care plans.

Of those states, the timely payment requirement is as follows:

• 3 require payment upon receipt of claim


• 3 require payment within 15 days of claim receipt


• 2 require payment within 25 days of claim receipt


• 15 require payment within 30 days of claim receipt


• 7 require payment within 45 days of claim receipt


• 2 require payment within 60 days of claim receipt


• 1 requires payment within 30/60/90 days depending on the type of claim

Late payment penalties also vary by state from none (seven states) to up to 25 percent annual interest (Tennessee) rates on the amount owed. Seventeen states have interest rates between 10 percent and 18 percent on the amount owed. Louisiana's penalty after 30 days is making insurers pay twice the claim amount owed. Ohio's law allows a health care plan's license to be suspended for a pattern of late payment after 24 days.

Source: Summary of State Laws and Timely Payment Requirements. Colorado Medical Society Health Care Financing Department. February 1999.