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In 1982, Congress passed the Prompt Payment Act to require Federal agencies to pay their bills on a timely basis; to pay interest penalties when payments are made late, and to take discounts.
Payment Act In general, an insurer has 30 days to pay a clean claim or to send a notice to the provider stating why the payment has been delayed or denied. Failure to comply with this portion of the act results in the accrual of interest equal to 1% per month of the billed charges.
Generally, making a prompt payment claim requires filing a lawsuit in civil court. The court will determine the validity of the claim. If successful, they'll impose any penalties due ing to the law. Most states apply interest penalties to late payments.
Here's a table of Satutes of Limitations on medical debt Medical Debt Statute of Limitations by StateStateMedical debt expiration timelineIndiana10 yearsIowa10 yearsKansas5 years49 more rows
Payment Act establishes a framework for prompt payment of health insurance claims. In general, an insurer has 30 days to pay a clean claim or to send a notice to the provider stating why the payment has been delayed or denied.