Author Topic: Applying a 12% interest to late payments  (Read 2100 times)

rkillian

  • Newbie
  • *
  • Posts: 19
Applying a 12% interest to late payments
« on: June 10, 2008, 08:21:47 PM »
I understand that hospitals in MI charge a 12% interest to payers who do not pay timely.  Does this apply to physician offices as well?  and how do you actually add the interest to the claim and notify them of this?  I can not add notes to my claim.

Thanks!

Michele

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 4743
    • Solutions Medical Billing
Re: Applying a 12% interest to late payments
« Reply #1 on: June 11, 2008, 08:45:34 PM »
Hi,
   I know that the AMA has helped 48 states enact prompt pay laws but the laws vary from state to state.  I am not aware that the provider can set the percentage rate for the interest.  I believe that the laws for each state specify the amount that can be charged.  Also, I don't think you need to add the charge to your claim, since they are suppose to process the claim in a certain time frame you don't know when you are submitting the claim whether or not they will process it timely.  If the claim is not processed timely you need to call the insurance carriers customer service line and inquire as to why the claim was not paid, and at that time request interest payment be made also.  The insurance carriers are suppose to pay the interest voluntarily.  Our local BCBS does pay interest whenever claims are over the time limit.  But they are the only ones that I have seen.

    The problem is that the claim must have been received but not processed.  If they state they didn't receive it, or if they state it wasn't a clean claim, then they are not liable for interest payments. 

    If anyone else has any info on this please respond.

Thanks
Michele
Sign Up for our FREE Medical Billing Newsletter
Get a 10% discount on Medical Billing Products by using Coupon Code: 10OFF
http://www.solutions-medical-billing.com

Tracy

  • Newbie
  • *
  • Posts: 8
Re: Applying a 12% interest to late payments
« Reply #2 on: June 17, 2008, 06:11:06 PM »
Here is a website that has all the states and what the prompt pay laws are for each. It also gives you contact numbers for each state.    http://www.healthproconsulting.net/promptpay.htm

Michele

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 4743
    • Solutions Medical Billing
Re: Applying a 12% interest to late payments
« Reply #3 on: June 19, 2008, 12:34:41 PM »
Thanks Tracie!

Great info!

Michele
Sign Up for our FREE Medical Billing Newsletter
Get a 10% discount on Medical Billing Products by using Coupon Code: 10OFF
http://www.solutions-medical-billing.com