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Nixon Requires Insurance Companies to Make Timely Payments April 27, 2010

Posted by kbianews in KRCU.
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Gov. Jay Nixon (File photo by: Kyle Stokes, KBIA)

KRCU’s Jacob McCleland brings us this story. Gov. Jay Nixon Tuesday signed into law a bill that requires insurance companies make timely payments to medical providers.

Speaking at St. Francis Medical Center in Cape Girardeau, the governor says that the so-called “prompt pay bill” eliminates the practice of suspending claims.

“Claims like this can live in a state of unpaid limbo for months or even years. All the while, patients who have paid insurance premiums continue to receive bills while the claims are suspended. The bill I am signing today outlaws suspended claims, making them a thing of the past. From now on, insurers must either pay or reject claims.”

The bill includes provision for a 1% per day penalty that insurance companies must pay to medical providers if payment is delayed by more than 45 days.

The new law will become effective January 1, 2011.

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