Alabama Timely Payment of Undisputed Medical Claims

• Category: Workers Compensation - Official
• State: Alabama
• Control #: AL-027-WC
• Format: PDF

Description

Timely Payment of Undisputed Medical Claims

Alabama Timely Payment of Undisputed Medical Claims is a state law that requires insurance companies operating in the state to pay undisputed medical claims within a set period of time. The law applies to all medical and dental claims submitted to any insurance company or third-party administrator in the state. The law also requires that the payer provide the provider with written notice of the claim denial within 30 days of receipt, and the provider must be given an opportunity to submit additional information before a denial can be issued. Under the law, all undisputed medical claims must be paid within 45 days of the receipt of the claim. If payment is not made within this time period, the payer must pay interest at the rate of 1.5% per month until the claim is paid. The law applies to all types of medical and dental claims, including those submitted for hospital services, professional services, and laboratory services. It also applies to claims submitted for services provided by an out-of-state provider. There are three types of Alabama Timely Payment of Undisputed Medical Claims: 1. Individual Claims: These are claims submitted by an individual patient or their representative. 2. Group Claims: These are claims submitted by a group of patients or their representative. 3. Third-Party Administrator Claims: These are claims submitted by a third-party administrator on behalf of an individual or a group.