August 2001 Bulletin

In Brief

A new law requires clean claims to be paid within 30 calendar days.

Legislators have approved a patients’ rights bill that guarantees appropriate emergency room and prescription drug coverage.

Gov. Jeb Bush signs a bill requiring HMO medical directors to be licensed physicians.

New Jersey
Legislators approved a bill allowing patients the right to sue their health insurers for denying or delaying medical care, if serious and significant harm has occurred or is about to occur. Otherwise, the patient would have to first exhaust the independent review procedures before they can go to court.

A bill passed out of committee setting the prompt payment requirement at 15 days for paper claims and 48 hours for electronic claims.

The penalty for failing to pay claims promptly will result in an interest penalty of the prime rate at the largest bank in the state plus 6 percent. That’s an increase from prime rate plus 2 percent.

A new bill requires payments within 30 days. The interest penalty was raised to 18 percent from 8 percent and the state can fine payers up to $300,000 per violation.

A bill drafted by the Oregon Association of Orthopaedists requires claims to be paid within 30 days. Interest accrues at 12 percent.

Rhode Island
Legislators approved a bill requiring paper claims to be paid within 40 days and electronic claims within 30 days. Late interest accrues at 12 percent.

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