# EACH OF THE 50 STATES WITH LEGAL TIME TO PAY & PUNITIVE INTEREST

### Alabama

E=30 Days P=45 Days

Willful violations are $1,000 fine, and 1.5% per month

**Alabama §27-21A-23 & §27-1-17**

### Alaska

30 Days

15% Annually

**Alaska §21.36.495**

### Arizona

30 Days

10% per year

**Arizona §20-3102 & §20-432**

### Arkansas

E=30 Days P=45 Days

12%per year

**Arkansas §20-66-215; 054 00 CARR 043 §12-13**

### California

30 Days

10% per year

**California Ins. Code §10123.13: Health & Safety Code §1371.35**

### Colorado

E=30 Days P=45 Days

10% per year

**Colorado §10-16-106.5**

### Connecticut

45 Days

15% per year

**Connecticut §38a-477 & §38a-815**

### District Columbia

30 Days

Monthly interest calculated:

- 1.5% percent from the 31st day through the 60th day;
- 2% percent from the 61st day through the 120th day; and
- 2.5% percent after the 120th day

**District Columbia §31-3132**

### Georgia

E=15 Days P=30 Days

12% per year

**Georgia §33-25-59.14**

### Delaware

30 Days

Annual Legal rate of interest shall be 5% over the Federal Reserve discount rate including any surcharge as of the time from which interest is due.

**Delaware CDR 18-1300-1310; §2322F**

### Florida

Out of State provider:

45 Days

10% per year

In State provider

E-20 Days P=40 Days

12% per year

**Florida Statute §627.613; §627.622; §627.6131; §641.3155: §627.622**

### Hawaii

E= 15 Days P=30 Days

15% per year

**Hawaii §431:13-108**

### Idaho

E=30 Days P=45 Days

12% per year

**Idaho Code §41-5602**

### Illinois

30 Days

9% per year

**Illinois 215 ILCS 5/368a**

### Indiana

E=30 Days P=45 Days

Formulary percentage rounded to the nearest whole number that equals the average investment yield on state money for the state’s previous fiscal year, excluding pension fund investments, as published in the auditor of state’s comprehensive annual financial report;

2014 = 0.5%

**Indiana §27-8-5.7-5: 12-15-21-3(7)(A)**

### Iowa

30 Days

10% per year

**Iowa §5078.4A; 191 IAC §15.32**

### Kentucky

30 Days

- For claims that are paid between one (1) and thirty (30) days from the date that payment was due, interest at a rate of twelve percent (12%) per annum;
- For claims that are paid between thirty-one (31) and sixty (60) days from the date that payment was, interest at a rate of eighteen percent (18%) per annum shall accrue; and
- For claims that are paid more than sixty (60) days from the date payment was due, interest at a rate of twenty-one percent (21%) per annum shall accrue.

**Kentucky §304.17A-702 806; §17-310**

### Kansas

30 Days

1% per month

**Kansas §40-2441**

### Lousiana

E=25 Days P=45 Days

12% per year

**Lousiana. R. S. §22:1831 et seq.; LAC §37:XIII.6001 et seq.**

### Maine

30 Days

1.5% per month

**Maine 45-A MRS §2436**

### Maryland

30 Days

Monthly rate of:

- 1.5% from the 31st day through the 60th day;
- 2% from the 61st day through the 120th day; and
- 2.5% after the 120th day.

**Maryland Insurance Code §15-1005**

### Massachusetts

45 Days

1.5% per month

**Massachusetts §6, ch.176G**

### Michigan

45 Days

12% per year

**Michigan §500.2006**

### Minnesota

30 Days

1.5% per month

**Minnesota §620.75**

### Mississippi

E=25 Days P=35 Days

1.5% per month

**Mississippi §83-9-5**

### Missouri

45 Days

1% per month and a penalty in an amount equal to one percent of the claim per day. Attorney fees.

**Missouri §376.383**

### Montana

30 Days

10% per year

**Montana §33-18-232**

### Nebraska

E=30 Days P=45 Days

12% per year

**Nebraska §44-8004**

### Nevada

30 Days

The largest bank in Nevada, as ascertained by the Commissioner of Financial Institutions, on January 1 or July 1, as the case may be, immediately preceding the date on which the payment was due.

**Nevada §683A.0879; §686A.675; §683A.0879; §616C.136; §584B.2505; §689B.255; §689C.485**

### New Hampshire

E=15 Days P=30 Days

1.5% per month

**New Hampshire §415:6-h; §415:18-k; §420-A:17-d; §420-J:8-a; N.H. Admin.Rules, Ins. 1001.02**

### New Jersey

E=30 Days P=40 Days

10% per year

**New Jersey §11:22-1.5**

### New Mexico

E=30 Days P=45 Days

1.5% per month

**New Mexico §59A-16-21.1: 13.10.22.12**

### New York

E=30 Days P=45 Days

12% per year

**New York §3224-a**

### North Carolina

E= 30 Days P= 45 Days

18% per year

**North Carolina §58-3-225**

### North Dakota

15 Days

No interest shall be payable

**North Dakota §26.1-36-37.1**

### Ohio

30 Days

18% per year

**Ohio §3901.381**

### Oklahoma

45 Days

10% per year

**Oklahoma 36 Okl. St. §1219**

### Oregon

30 Days

12% per year

**Oregon §743.911: Admin.836-052-0770**

### Pennsylvania

45 Days

10% per year

**Pennsylvania 40 P.S. §991.2166: 31 Pa. Code §154.18**

### Rhode Island

E=30 Days P=40 Days

12% per year

**Rhode Island RI Gen. Laws §27-18-61: §27-19-52: §27-20-47: §27-41-64: CRIR 02-031-007**

### South Carolina

E=20 Days P=40 Days

8.75% per year

**South Carolina §38-59-240**

### South Dakota

E= 30 P=45

None

**South Dakota §58-12-20**

### Tennessee

E= 21 Days P=30 Days

1% per month

**Tennessee §56-7-109**

### Texas

E= 30 Days P=45 Days

18% per year

**Texas §542.051**

### Utah

30 Days

Formula

For the first 90 days that a claim payment or a provider response to a request for information is late, the late fee shall be determined by multiplying together:

a.) For the first 90 days that a claim payment or a provider response to a request for information is late, the late fee shall be determined by multiplying together:

(i) the total amount of the claim;

(ii) the total number of days the response or the payment is late; and

(iii) .1%.

For a claim payment or a provider response to a request for information that is 91 or more days late, the late fee shall be determined by adding together:

(i) the late fee for a 90-day period under Subsection (8)(b); and

(ii) the following multiplied together:

(A) the total amount of the claim;

(B) the total number of days the response or payment was late beyond the initial 90-day period; and

(C) the rate of interest set in accordance with Section 15-1-1.

(D) Any late fee paid or collected under this section shall be separately identified on the documentation used by the insurer to pay the claim.

(E) For purposes of this Subsection (8), “late fee” does not include an amount that is less than $1.

15-1-1. Interest rates — Contracted rate — Legal rate.

(1) The parties to a lawful contract may agree upon any rate of interest for the loan or forbearance of any money, goods, or chose in action that is the subject of their contract.

(2) Unless parties to a lawful contract specify a different rate of interest, the legal rate of interest for the loan or forbearance of any money, goods, or chose in action shall be 10% per annum.

**Utah §31A-26-301.6: U.A.C. R590-192**

### Vermont

30 Days

12% per year

**Vermont 18 V.S.A. §9418**

### Virginia

40 Days

6% interest or higher as per contract

**Virginia ****§38.2-3407.15**

### Washington

Within 30 Days for 95% of monthly volume

1% per month beginning on 62nd day

**Washington §284-43-321**

### West Virginia

E= 30 Days P = 40 Days

10% per annum after 40 days

**West Virginia §33-45-2**

### Wisconsin

30 Days

12% per year

**Wisconsin §628.46**

### Wyoming

45 Days

10% per year, may include attorney fees

**Wyoming §26-15-124**

# If you don’t measure it, you don’t value it.

**Direct quote from Dr. Mikel J. Harry, Co-Creator of the business process, Six Sigma, and who directed over $100+ Billion in savings for 52 of the Fortune 100.**

Health Care Prompt Pay laws came about in 1999 to 2001, where by all 50 States enacted their own version of the Prompt Pay act to protect Health Care providers and Hospitals from Payors and Insurance companies who do not pay on time.

Each State requires that once a health provider sends claims to the insurance payor, that when the payor responds that a set of claims are “Clear” for payment within a set amount of time for those claims to be paid by, and if not paid within that specified time frame then punitive interest will commence. For example, here are some of the States time frames upon which the payor must settle or penalty interest begins:

Florida requires payment for Out of State providers in 45 days, then 10% annually; In State providers, 20 Days electronically, 40 days for Paper, with 12% yearly.

Texas requires payment in 45 days, or 18%;

Tennessee requires payment in 20 days, or 1% per month interest commences.

Review each **State’s** specific requirements.

In 2002, a well funded large Law firm invested millions in hiring wall street wiz kids, quants and MBAs to attempt to calculate the hundreds of thousands of claims and interest penalties. They were unsuccessful due to not being able to provide a clean data map.

Fast forward to today, and one data analytics company has created the “scrubber” which is HIPAA compliant in all Fifty states.

Just about every health care C Level executive has said, “*Our claims are paid on time.*”

When we offer to measure how much valuable money they have in “miss timed” payments, the results simply floor them.

How late are these payments ?

Would you be upset if you found out your health care facility was being paid late from the State mandated time frame, an additional…

**148 days ?!?**

What if the punitive amount due was…

**$150 Million ?!?**

**Are you ready to measure how much money your facility is really owed?**