This table provides an brief overview of which states have prompt payment laws on their books. Remember, you may be entitled to prompt payment under the statute whether you have a contract or not.
| State/Citation | Status of Law | State Contact |
| Alabama
HB164 (2001) Amends Insurance General Provisions §
27-1-19 Rules of Alabama State Board of Health
Bureau of Health Care Standards |
30 calendar days
for clean electronic claims & 45 calendar days for clean
written claims.
Interest on overdue claims is 1.5%. |
For insurance plans: Alabama Department of Insurance, (334) 269-3550 |
| Alaska
Division of Alaska Insurance Administrative Code 3 AAC 26070 |
30 days for a clean claim to be paid. | Alaska Division of
Insurance
(907) 465-2515 |
| Arizona
Title 20 Insurance |
Claims must be paid within 30 days or the time period specified in the contract. Interest on overdue claims at a rate that is equal to the legal rate. | Arizona Department
of Insurance
(800) 325-2548 |
| Arkansas
Insurance Regulations |
30 days for electronic clean claims and 45 days for non-electronic clean claims. Penalty is 12% per year for late payment. | Arkansas
Department of Insurance
(800) 282-9134 |
| California
Health and Safety Codes Insurance Code § 10123.13 Reimbursement of Claims |
Claims must be paid within 45 working days for an HMO, 30 days for a health service plan. Interest accrues at 15% per annum. | California
Department of Managed Healthcare
(800) 400-0815 |
| Colorado
10-16-106.5 Title 10 Article 16 |
As of January 1, 2000, claims must be paid in 30 days if submitted electronically, 45 if not. Penalty is 10% annually. After 90 days an extra penalty of 10% of the total amount of claim is added. | Colorado Division
of Insurance
(303) 894-7499 |
| Connecticut
Public Act No. 98-163, Insurance General
Statutes § 38a-816 |
Claims must be paid within 45 working days. Interest accrues at 15% per annum. | Connecticut
Department of Insurance (Consumer Affairs)
(860) 297-3800 |
| Delaware
Department of Insurance
|
Clean claims must be paid in 45 days. Penalty interest at maximum rate allowable to lenders under Title 6 §2301A. | Delaware
Department of Insurance
(302) 739-4251
|
| District of
Columbia
Title 31 Ch. 31A Section 331 et faq 2002 Supplement |
30 days for clean claim. Interest penalty for overdue claims is 1.5% from 31st to 60th day. 61st to 120th day penalty is 2% and after 120th interest penalty is 2.5%. | District of
Columbia Department of Insurance
(202) 727-8000
|
| Florida
Title 37 § 641.3155 Provider contracts; payment of claims |
Electronic clean
claims must be paid in 20 days and paper claim paid in 40 days.
Interest penalty for overdue claims is 12% per year.
|
Consumer
Affairs-Florida Department of Insurance
(850) 413-3100 |
| Georgia
Title 33 Insurance |
Claims must be paid within 15 days. Interest accrues at 18% per annum. | Georgia Office of
Insurance (Consumer Services)
(404) 656-2056 |
| Hawaii
Chapter 431:13 Reimbursement for Health Insurance Benefits |
Clean, paper claims must be paid in 30 days, electronic claims within 15 days. Interest accrues at 15%. Commissioner may impose fines. | Hawaii Medical
Association
(808) 536-7702 |
| Idaho | Does not have a prompt payment law. | |
| Illinois
215 ILCS 5/368a Timely Payment for Health Care Services
|
Clean claims must be paid in 30 days. Interest accrues at 9% per annum. | Illinois
Department of Insurance
(312) 814-2427
|
| Indiana
IC 27-8-5.7 Accident and Sickness Insurance Provider Payment |
Paper claims must be paid in 45 days, 30 days for electronic claims. The interest rate provided under §IC 12-15-27-3(7)(A). | Indiana Department
of Insurance (Consumer Services)
(317) 232-2385 |
| Iowa
Senate File 500 Section 8
|
Clean claim paid within 30 days. Penalty amount is 10%. | Iowa Division of
Insurance
(515) 281-5705 |
| Kansas
L.2000 CH.147, Section 43-46 Chapter 40 Insurance |
30 day timeframe 1% fine per month or interest imposed on late payment. |
Kansas Department
of Insurance, (ask for Accident & Health Services)
(785) 296-3071 |
| Kentucky
KRS 304.17A.702 |
Claims must be paid within 30 working days. Interest accrues at 12% per annum between 31 and 60 days. 18% between 61 and 90 days. 21% after 90 days. | Kentucky
Department of Insurance
(502) 564-6088 |
| Louisiana
Title 22 R.S. 22:250.31 through 250.37 |
Claims submitted electronically must be paid within 25 days. Paper claims submitted in 45 days must be paid in 45 days; submitted after 45 days must be paid in 60 days. Penalty is 1% of unpaid balance. An additional 1% penalty is added for each 25 days that the claim remains unpaid. | Louisiana
Department of Insurance
(225) 342-0895 |
| Maine
Title 24 Insurance Code |
Clean claims must be paid within 30 days. Interest accrues at 1.5% per month. | Maine Bureau of
Insurance (Ask for Consumer Health)
(207) 624-8475 |
| Maryland
Article - Insurance 15-1005. Prompt Payment of Claims |
Clean claims must be paid within 30 days. Interest accrues at monthly rates of 1.5% (31-60 days late), 2% (61-120 days late), and 2.5% (121+ days late). | Maryland Insurance
Administration
(800) 492-6116 |
| Massachusetts
Chapter 141, Section 20 and 24 |
Payer must respond within 45 days of receipt of notice for claims reimbursement. Interest accrues at 1.5% per month, not to exceed 18% per year. | Massachusetts
Division of Insurance, Health Unit of the State Rating Bureau
(617) 521-7349 |
| Michigan
§ 500.2006 Timely payment of benefits or interest; proof of loss |
Law applies only to non-contracted providers: Claims must be paid in 60 days, with an interest penalty of 12% per annum. | Michigan Insurance
Division
(517) 373-0240 |
| Minnesota
Statutes Chapter 62Q.75 Prompt Payment Required |
Undisputed or disputed claims paid within 30 days. Interest on overdue claims at 1.5% per month. | Minnesota
Department of Commerce
(651) 296-4026 |
| Mississippi
Title 83 Insurance |
25 calendar days after receipt of electronic clean claims and 35 calendar days after receipt of non-electronic clean claims. Interest accrues at 1.5% per month. | Mississippi
Department of Insurance
(601) 359-3569 |
| Missouri
Missouri Revised Statutes
|
Claims must be paid, denied, or returned for information within 45 days. Penalty is 1% per month. An additional penalty of 50% of the claim -- not to exceed $20 -- is imposed if the claim is not paid, suspended or denied or if the interest due is not paid within 40 processing days if the provider so notifies the carrier of this delinquency. | Missouri
Department of Insurance
(573) 751-4126 |
| Montana
Title 33 Insurance and Insurance
Companies |
Clean claims must be paid within 30 days. Interest accrues at 18% per annum. | Montana Department
of Insurance
(406) 444-2040 |
| Nebraska
Unfair Claim Practices |
15 working days after claim adjudication is completed. 30 days to pay claim. | Nebraska
Department of Insurance Consumer Hotline
(877) 564-7323 |
| Nevada
Nevada Revised Statute (NRS) |
30 days to pay claims. Interest equal to the prime rate at the largest bank in Nevada plus an additional 6%. | Nevada Division of
Insurance
(775) 687-4270 |
| New Hampshire
415:6-H Effective 1/1/01 |
Payment within 15 days for electronic claims. 45 days for non-electronic claims. Interest 1.5% per month on overdue claims. | New Hampshire
Department of Insurance
(603) 271-2261 |
| New Jersey
S.B. 323 and A.B. 2121 |
Clean, electronic claims must be paid within 30 days, paper claims within 40 days. Interest on overdue claims at 10% per year. | New Jersey
Division of Insurance, Life & Health Section, Enforcement
& Consumer Protection
(609) 292-5316 |
| New Mexico
Title 13 Insurance |
30 days for electronic clean claims and 45 days for non-electronic clean claims. Interest on overdue claims is 1.5% per month. | New Mexico
Department of Insurance Consumer Division
(505) 827-4601 |
| New York
Chapters 637 and 666 of the Laws of 1997 |
Claims must be paid within 45 days. Interest accrues at greater of 12% per year or corporate tax rate determined by Commissioner. | New York State
Insurance Department Consumer Services Bureau
(212) 480-6400 |
| North Carolina
Chapter 58 Insurance |
Plan must notify of claim status within 30 days. No regulation on payment. Interest on overdue claims 18%. | North Carolina
Department of Insurance
(919) 733-2032 |
| North Dakota
§ 26.1-36-37.1 Standard Health Insurance Proof of Loss Form - Claim Payment Time Limits |
Claims must be paid within 15 days. | North Dakota
Department of Insurance
(701) 328-2440 |
| Ohio
Title 39 Insurance |
Complete claims must be paid 30 days after receipt by the insurance carrier. Interest on overdue claims is 18% a year. | Ohio Department of
Insurance
(614) 644-2658 |
| Oklahoma
Insurance Code 36 Title 63 O.S. Section 2514 Title 74 §1238 |
Claims must be paid within 45 days. Interest accrues at 10% per year. | Oklahoma Insurance
Department
(405) 521-2828 |
| Oregon
Claim Settlement Practices |
30 days to pay claim. Interest on overdue claims is 12% per year. | Oregon Department
of Insurance
(503) 947-7984 |
| Pennsylvania
Title 40 P.S. Section 991.2166 Prompt Payment of Claims |
Clean claims must be paid in 45 days. Interest is 10% per annum. For claims with HMOs/PPOs, providers must first exhaust carrier appeals process. | Pennsylvania
Insurance Department
(717) 787-2317 |
| Rhode Island
Prompt Claims Processing. Title 27, Chapter 18, Section 61 |
30 days for electronic claims. 40 days for paper claims. Interest penalty is 12% per year. | Rhode Island
Department of Insurance
(401) 222-2223 |
| South Carolina
Accident and Health Insurance |
Fully insured plan claims must be paid within 60 days, providing all necessary information is received to process claim. | South Carolina
Department of Insurance
(803) 737-6160 |
| South Dakota
Time limits for processing claims. |
30 days for electronic, 45 days for paper claims. | South Dakota
Department. of Insurance
(605) 773-3563 |
| Tennessee
Title 56 Chapter 7, Section 109 |
30 days for non-electronic claims. 21days for electronic clean claims. Interest on overdue claims 1% per month. | Tennessee
Department of Insurance, Legal Division
(615) 741-2199 |
| Texas
Texas Health Maintenance Organization Act PPO HMO |
45 days for payment, denial or audit of non-electronic, non-pharmacy clean claims; 30 days for payment, denial or audit of electronic; non-pharmacy clean claims; 21 days from affirmative adjudication for payment of pharmacy claims. Late payment penalties: (1) If claim is paid on or before 45th day after applicable statutory claim payment period (as defined) carrier must pay: contracted rate plus the lesser of 50% of difference between contracted rate and billed charges or $100,000. (2) If claim is paid on or after the 46th day but before 91st day after applicable statutory claim payment period, carrier must pay: the contracted rate plus the lesser of 100% of the difference between contracted and billed charge or $200,000. (3) If claim is paid on or after the 91st day after the applicable statutory claim payment period, the carrier must pay the contracted rate plus the penalty specified in paragraph 2 plus 18% interest on the penalty amount. | Texas Department
of Insurance
(512) 322-4266 |
| Utah
State Rule 590-89 Unfair Claims Settlement Practices Rule |
30 days for claim payment. For the first 90 days that the payment is late: multiply the total amount of the claim by the total number of days that the payment is late by 1%. For a claim payment that is 91 or more days late, add the late fee for the first 90 days and the following sum: the total amount of the claim, the number of days that the response is late beyond the initial 90 days and the rate of interest established under § 15-1-1. | Utah Department of
Insurance
(801) 538-3800 |
| Vermont
Title 18 Chapter 221 Section 9418 |
Claims must be paid in 45 days. Interest penalty is 12% per annum. | Vermont Department
of Insurance
(802) 828-3301 |
| Virginia
Chapter 34, Title 38.2 |
Clean claims must be paid within 40 days. Penalty interest rate is the legal rate of interest. | Virginia
Legislative Services
(804) 786-3591 |
| Washington
R § 284-43-321 (1999) |
30 days for clean claims. Interest penalty is 1% per month. | Washington
Insurance Commission
(360) 753-7300 |
| West Virginia
33-43-2 |
30 days for electronic clean claims and 40 days for manual (non-electronic) clean claims. Interest penalty is 10% per year. | West Virginia
Division of Insurance
(304) 558-3386 |
| Wisconsin
Insurance Chapter 628 Insurance Marketing |
If claims are not paid within 30 days they are subject to a penalty interest rate of 12% per year. | Wisconsin
Department of Insurance Complaints & Consumer Services
(608) 266-3585 |
| Wyoming
Title 26 Insurance Code |
Claims must be paid within 45 days. Interest penalty is 10% per year. | Wyoming Department
of Insurance
(307) 777-7401 |
