Prompt Pay Problems?

The Prompt Pay Law includes the following provisions:

Expands prompt pay law to include PPOs and indemnity insurance plans.

Closes the loophole which allowed HMOs to avoid prompt pay laws by contracting with a third party.

Eliminates the concept of "clean claim" and provides that time frames begin from receipt of claims.

Adds processing time requirements for both electronic and non-electronic claims.

Increases interest rate on overdue claims from 10% to 12%.

Sets restrictions on HMOs that reduce payments to physicians for alleged over payments.

Provides that the prompt payment requirements cannot be nullified by contract.

Limits internal appeals to 60 days.