SB 236 – Modifies various provisions of the prompt pay statutes as they relate to the calculation of interest and penalties, the payment of attorney fees, and other ancillary matters

• Sponsor: Lembke
• LR Number: 1316L.01I
• Committee: Health, Mental Health, Seniors and Families
• Last Action: 5/15/2009 - S Informal Calendar S Bills for Perfection--SB 236-Lembke
• Effective Date: August 28, 2009

Current Bill Summary

SB 236 - This act modifies Missouri's prompt pay law. Under the proposed act, the definition of health carrier is modified to include self-insured health plans. The act also amends the definition of "request for additional information" to mean a health carrier's electronic request for additional information from a claimant which specifies what information is needed in order to process the claim for payment. The act deletes the definition of the term "suspends the claim." Under the terms of the act, a health carrier must send an electronic acknowledgment of the date of receipt of an electronically filed claim by a health or a third-party contractor within one working day. Within 15 days (current law allows 10 working days) after receipt of a filed claim by a health carrier, the carrier must send an electronic notice of the status of the claim.

The act modifies the interest and penalty provision for failing to promptly pay a claim. Under the proposed act, if the health carrier has not paid the claimant on or before the 45th processing day from the date of the receipt of the claim, the carrier must pay the claimant 1.5% interest per month (current law is 1% per month) and a penalty in an amount equal to one-fifth of the claim per day. The interest and penalties cease to accrue on the day a petition is filed in court to recover payment on a claim. If a court determines that a health carrier has failed to pay a claim, interest, or penalty without good cause, the court shall enter judgment for attorney fees. If the court determines that a health care provider has filed suit without reasonable grounds to recover a claim, the court shall award the health carrier reasonable attorney fees related to the defense.

Under the terms of the act, any claim for which the health carrier has not communicated a specific reason for the denial shall not be considered denied under the prompt pay statutes. The act also provides that any request by a carrier for additional information shall be reasonable in scope and pertain solely to the carrier’s determination of liability.

STEPHEN WITTE