Throughout the United States, almost every state has enacted Prompt Payment laws. These laws have been put in place specifically for the protection of those to whom monies are owed, whether for construction work, for reimbursement of medical claims, for public works, or many other services that may have been provided but for which payment has not been remitted in a timely fashion.
The Prompt Payment laws differ for each state, but generally they establish a 30 to 45-day window in which a claim is expected to be paid; after the 45th day, as long as the claim is "clean" (meaning that there are no disputes as to the accuracy or appropriateness of the bill), interest begins to accrue on the unpaid bill at a high rate, and fines and penalties can be levied for each claim that has not been paid.
Relief for Medical Practices
For many years, physicians' practices, hospitals, laboratories, diagnostic service providers and other healthcare facilities frequently suffered at the hands of insurance companies or even direct pay clients who dragged their feet about remitting payments that were owed to them for services rendered.
Whether the payor is an HMO, a PPO or an employee benefit covered by the Employee Retirement Income Security Act (ERISA), the prompt pay laws have been established to provide much-needed financial relief for those who have waited far too long to receive the payment that they are owed, but it is important that when filing a prompt pay claim you have an experienced attorney working on your behalf. The prompt pay lawyers at Danziger & De Llano are well-versed in prompt pay law and can help you to collect the monies to which you are entitled.