A N A C T
RELATING TO INSURANCE -- PROMPT CLAIMS PROCESSING
It is enacted by the General Assembly as follows:
SECTION 1. Chapter 27-18 of the General Laws entitled "Accident and Sickness Insurance Policies" is hereby amended by adding thereto the following section:
27-18-61. Prompt processing of claims. -- (a) A health care entity or health plan operating in the state shall pay all complete claims for covered health care services submitted to such health care entity or health plan by a health care provider or by a policyholder within forty (40) calendar days following the date of receipt of a complete written claim or within thirty (30) calendar days following the date of receipt of a complete electronic claim. Each health plan shall establish a written standard defining what constitutes a complete claim and shall distribute this standard to all participating providers.
(b) If the health care entity or health plan denies or pends a claim, the health care entity or health plan shall have thirty (30) calendar days from receipt of said claim to notify in writing the health care provider or policyholder of any and all reasons for denying or pending the claim and what, if any, additional information is required to process said claim. No health care entity or health plan may limit the time period in which additional information may be submitted to complete a claim.
(c) Any claim that is resubmitted by a health care provider or policyholder shall be treated by the health care entity or health plan pursuant to the provisions of paragraph (a) of this section.
(d) A health care entity or health plan which fails to reimburse the health care provider or policyholder after receipt by the health care entity or health plan of a complete claim within the required time frames shall pay to the health care provider or the policyholder who submitted such claim, in addition to any reimbursement for health care services provided, interest which shall accrue at the rate of twelve percent (12%) per annum commencing on the thirty-first (31st) day after receipt of a complete electronic claim or on the forty-first (41st) day after receipt of a complete written claim, and ending on the date the payment is issued to the health care provider or the policyholder.
(e) Exceptions to the requirements of this section are as follows:
(1) No health care entity or health plan operating in the state shall be in violation of this section for a claim submitted by a health care provider or policyholder if:
(i) failure to comply is caused by a directive from a court or federal or state agency;
(ii) the health care entity or health plan is in liquidation or rehabilitation or is operating in compliance with a court-ordered plan of rehabilitation; or
(iii) the health care entity or health plan's compliance is rendered impossible due to matters beyond its control which are not caused by it.
(2) No health care entity or health plan operating in the state shall be in violation of this section for any claim (i) initially submitted more than ninety (90) days after the service is rendered, or (ii) resubmitted more than ninety (90) days after the date the health care provider received the notice provided for in section 27-18-61(b); provided, however, this exception shall not apply in the event compliance is rendered impossible due to matters beyond the control of the health care provider and were not caused by such health care provider.
(3) No health care entity or health plan operating in the state shall be in violation of this section while the claim is pending due to a fraud investigation by a state or federal agency.
(4) No health care entity or health plan operating in the state shall be obligated under this section to pay interest to any health care provider or policyholder for any claim if the director of the department of business regulation finds that such entity or plan is in substantial compliance with this section. A health care entity or health plan seeking such a finding from the director shall submit such documentation as the director shall require. A health care entity or health plan which is found to be in substantial compliance with this section shall thereafter submit such documentation as the director may require on an annual basis for the director to assess ongoing compliance with this section.
(5) A health care entity or health plan may petition the director for a waiver of the provision of this section for a period not to exceed ninety (90) days in the event the health care entity or health plan is converting or substantially modifying its claims processing systems.
(f) For purposes of this section, the following definitions shall apply:
(1) "Claim" means: (i) a bill or invoice for covered services; (ii) a line item of service; or (iii) all services for one patient or subscriber within a bill or invoice.
(2) "Date of receipt" means the date the health care entity or health plan receives the claim whether via electronic submission or as a paper claim.
(3) "Health care entity" means a licensed insurance company or nonprofit hospital or medical or dental service corporation or plan or health maintenance organization, or a contractor as described in section 23-17.13-2(B), that operates a health plan.
(4) "Health care provider" means an individual clinician, either in practice independently or in a group, who provides health care services, and otherwise referred to as a non-institutional provider.
(5) "Health care services" include, but are not limited to, medical, mental health, substance abuse, dental and any other services covered under the terms of the specific health plan.
(6) "Health plan" means a plan operated by a health care entity that provides for the delivery of health care services to persons enrolled in such plans through:
(i) arrangements with selected providers to furnish health care services; and/or
(ii) financial incentive for persons enrolled in the plan to use the participating providers and procedures provided for by the health plan.
(7) "Policyholder" means a person covered under a health plan or a representative designated by such person.
(8) "Substantial compliance" means that the health care entity or health plan is processing and paying ninety-five percent (95%) or more of all claims within the time frame provided for in section 27-18-61(a) and (b).
(g) Any provision in a contract between a health care entity or a health plan and a health care provider which is inconsistent with this section shall be void and of no force and effect.
SECTION 2. Chapter 27-19 of the General Laws entitled "Nonprofit Hospital Service Corporations" is hereby amended by adding thereto the following section:
27-19-52. Prompt processing of claims. - (a) A health care entity or health plan operating in the state shall pay all complete claims for covered health care services submitted to such health care entity or health plan by a health care provider or by a policyholder within forty (40) calendar days following the date of receipt of a complete written claim or within thirty (30) calendar days following the date of receipt of a complete electronic claim. Each health plan shall establish a written standard defining what constitutes a complete claim and shall distribute this standard to all participating providers.
(b) If the health care entity or health plan denies or pends a claim, the health care entity or health plan shall have thirty (30) calendar days from receipt of said claim to notify in writing the health care provider or policyholder of any and all reasons for denying or pending the claim and what, if any, additional information is required to process said claim. No health care entity or health plan may limit the time period in which additional information may be submitted to complete a claim.
(c) Any claim that is resubmitted by a health care provider or policyholder shall be treated by the health care entity or health plan pursuant to the provisions of paragraph (a) of this section.
(d) A health care entity or health plan which fails to reimburse the health care provider or policyholder after receipt by the health care entity or health plan of a complete claim within the required timeframes shall pay to the health care provider or the policyholder who submitted such claim, in addition to any reimbursement for health care services provided, interest which shall accrue at the rate of twelve percent (12%) per annum commencing on the thirty-first (31st) day after receipt of a complete electronic claim or on the forty-first (41st) day after receipt of a complete written claim, and ending on the date the payment is issued to the health care provider or the policyholder.
(e) Exceptions to the requirements of this section are as follows:
(1) No health care entity or health plan operating in the state shall be in violation of this section for a claim submitted by a health care provider or policyholder if:
(i) failure to comply is caused by a directive from a court or federal or state agency;
(ii) the health care provider or health plan is in liquidation or rehabilitation or is operating in compliance with a court-ordered plan of rehabilitation; or
(iii) the health care entity or health plan's compliance is rendered impossible due to matters beyond its control which are not caused by it.
(2) No health care entity or health plan operating in the state shall be in violation of this section for any claim (i) initially submitted more than ninety (90) days after the service is rendered, or (ii) resubmitted more than ninety (90) days after the date the health care provider received the notice provided for in section 27-18-61(b); provided, however, this exception shall not apply in the event compliance is rendered impossible due to matters beyond the control of the health care provider and were not caused by such health care provider.
(3) No health care entity or health plan operating in the state shall be in violation of this section while the claim is pending due to a fraud investigation by a state or federal agency.
(4) No health care entity or health plan operating in the state shall be obligated under this section to pay interest to any health care provider or policyholder for any claim if the director of the department of business regulation finds that such entity or plan is in substantial compliance with this section. A health care entity or health plan seeking such a finding from the director shall submit such documentation as the director shall require. A health care entity or health plan which is found to be in substantial compliance with this section shall thereafter submit such documentation as the director may require on an annual basis for the director to assess ongoing compliance with this section.
(5) A health care entity or health plan may petition the director for a waiver of the provision of this section for a period not to exceed ninety (90) days in the event the health care entity or health plan is converting or substantially modifying its claims processing systems.
(f) For purposes of this section, the following definitions shall apply:
(1) "Claim" means:
(i) a bill or invoice for covered services;
(ii) a line item of service; or
(iii) all services for one patient or subscriber within a bill or invoice.
(2) "Date of receipt" means the date the health care entity or health plan receives the claim whether via electronic submission or has a paper claim.
(3) "Health care entity" means a licensed insurance company or nonprofit hospital or medical or dental service corporation or plan or health maintenance organization, or a contractor as described in section 23-17.13-2(B), that operates a health plan.
(4) "Health care provider" means an individual clinician, either in practice independently or in a group, who provides health care services, and otherwise referred to as a non-institutional provider.
(5) "Health care services" include, but are not limited to, medical, mental health, substance abuse, dental and any other services covered under the terms of the specific health plan.
(6) "Health plan" means a plan operated by a health care entity that provides for the delivery of health care services to persons enrolled in such plans through:
(i) arrangements with selected providers to furnish health care services; and/or
(ii) financial incentive for persons enrolled in the plan to use the participating providers and procedures provided for by the health plan.
(7) "Policyholder" means a person covered under a health plan or a representative designated by such person.
(8) "Substantial compliance" means that the health care entity or health plan is processing and paying ninety-five percent (95%) or more of all claims within the time frame provided for in section 27-18-61(a) and (b).
(g) Any provision in a contract between a health care entity or a health plan and a health care provider which is inconsistent with this section shall be void and of no force and effect.
SECTION 3. Chapter 27-20 of the General Laws entitled "Nonprofit Medical Service Corporations" is hereby amended by adding thereto the following section:
27-20-47. Prompt processing of claims. -- (a) A health care entity or health plan operating in the state shall pay all complete claims for covered health care services submitted to such health care entity or health plan by a health care provider or by a policyholder within forty (40) calendar days following the date of receipt of a complete written claim or within thirty (30) calendar days following the date of receipt of a complete electronic claim. Each health plan shall establish a written standard defining what constitutes a complete claim and shall distribute the standard to all participating providers.
(b) If the health care entity or health plan denies or pends a claim, the health care entity or health plan shall have thirty (30) calendar days from receipt of said claim to notify in writing the health care provider or policyholder of any and all reasons for denying or pending the claim and what, if any, additional information is required to process said claim. No health care entity or health plan may limit the time period in which additional information may be submitted to complete a claim.
(c) Any claim that is resubmitted by a health care provider or policyholder shall be treated by the health care entity or health plan pursuant to the provisions of paragraph (a) of this section.
(d) A health care entity or health plan which fails to reimburse the health care provider or policyholder after receipt by the health care entity or health plan of a complete claim within the required time frames shall pay to the health care provider or the policyholder who submitted such claim, in addition to any reimbursement for health care services provided, interest which shall accrue at the rate of twelve percent (12%) per annum commencing on the thirty-first (31st) day after receipt of a complete electronic claim or on the forty-first (41st) day after receipt of a complete written claim, and ending on the date the payment is issued to the health care provider or the policyholder.
(e) Exceptions to the requirements of this section are as follows:
(1) No health care entity or health plan operating in the state shall be in violation of this section for a claim submitted by a health care provider or policyholder if:
(i) failure to comply is caused by a directive from a court or federal or state agency;
(ii) the health care entity or health plan is in liquidation or rehabilitation or is operating in compliance with a court-ordered plan of rehabilitation; or
(iii) the health care entity or health plan's compliance is rendered impossible due to matters beyond its control which are not caused by it.
(2) No health care entity or health plan operating in the state shall be in violation of this section for any claim (i) initially submitted more than ninety (90) days after the service is rendered, or (ii) resubmitted more than ninety (90) days after the date the health care provider received the notice provided for in section 27-18-61(b); provided, however, this exception shall not apply in the event compliance is rendered impossible due to matters beyond the control of the health care provider and were not caused by such health care provider.
(3) No health care entity or health plan operating in the state shall be in violation of this section while the claim is pending due to a fraud investigation by a state or federal agency.
(4) No health care entity or health plan operating in the state shall be obligated under this section to pay interest to any health care provider or policyholder for any claim if the director of the department of business regulation finds that such entity or plan is in substantial compliance with this section. A health care entity or health plan seeking such a finding from the director shall submit such documentation as the director shall require. A health care entity or health plan which is found to be in substantial compliance with this section shall thereafter submit such documentation as the director may require on an annual basis for the director to assess ongoing compliance with this section.
(5) A health care entity or health plan may petition the director for a waiver of the provision of this section for a period not to exceed ninety (90) days in the event the health care entity or health plan is converting or substantially modifying its claims processing systems.
(f) For purposes of this section, the following definitions shall apply:
(1) "Claim" means: (i) a bill or invoice for covered services; (ii) a line item of service; or (iii) all services for one patient or subscriber within a bill or invoice.
(2) "Date of receipt" means the date the health care entity or health plan receives the claim whether via electronic submission or has a paper claim.
(3) "Health care entity" means a licensed insurance company or nonprofit hospital or medical or dental service corporation or plan or health maintenance organization, or a contractor as described in section 23-17.13-2(B), that operates a health plan.
(4) "Health care provider" means an individual clinician, either in practice independently or in a group, who provides health care services, and otherwise referred to as a non-institutional provider.
(5) "Health care services" include, but are not limited to, medical, mental health, substance abuse, dental and any other services covered under the terms of the specific health plan.
(6)"Health plan" means a plan operated by a health care entity that provides for the delivery of health care services to persons enrolled in such plans through:
(i) arrangements with selected providers to furnish health care services; and/or
(ii) financial incentive for persons enrolled in the plan to use the participating providers and procedures provided for by the health plan.
(7) "Policyholder" means a person covered under a health plan or a representative designated by such person.
(8) "Substantial compliance" means that the health care entity or health plan is processing and paying ninety-five percent (95%) or more of all claims within the time frame provided for in section 27-18-61(a) and (b).
(g) Any provision in a contract between a health care entity or a health plan and a health care provider which is inconsistent with this section shall be void and of no force and effect.
SECTION 4. Chapter 27-41 of the General Laws entitled "Health Maintenance Organizations" is hereby amended by adding thereto the following section:
27-41-64. Prompt processing of claims. -- (a) A health care entity or health plan operating in the state shall pay all complete claims for covered health care services submitted to such health care entity or health plan by a health care provider or by a policyholder within forty (40) calendar days following the date of receipt of a complete written claim or within thirty (30) calendar days following the date of receipt of a complete electronic claim. Each health plan shall establish a written standard defining what constitutes a complete claim and shall distribute this standard to all participating providers.
(b) If the health care entity or health plan denies or pends a claim, the health care entity or health plan shall have thirty (30) calendar days from receipt of said claim to notify in writing the health care provider or policyholder of any and all reasons for denying or pending the claim and what, if any, additional information is required to process said claim. No health care entity or health plan may limit the time period in which additional information may be submitted to complete a claim.
(c) Any claim that is resubmitted by a health care provider or policyholder shall be treated by the health care entity or health plan pursuant to the provisions of paragraph (a) of this section.
(d) A health care entity or health plan which fails to reimburse the health care provider or policyholder after receipt by the health care entity or health plan of a complete claim within the required time frames shall pay to the health care provider or the policyholder who submitted such claim, in addition to any reimbursement for health care services provided, interest which shall accrue at the rate of twelve percent (12%) per annum commencing on the thirty-first (31st) day after receipt of a complete electronic claim or on the forty-first (41st) day after receipt of a complete written claim, and ending on the date the payment is issued to the health care provider or the policyholder.
(e) Exceptions to the requirements of this section are as follows:
(1) No health care entity or health plan operating in the state shall be in violation of this section for a claim submitted by a health care provider or policyholder if:
(i) failure to comply is caused by a directive from a court or federal or state agency;
(ii) the health care entity or health plan is in liquidation or rehabilitation or is operating in compliance with a court-ordered plan of rehabilitation; or
(iii) the health care entity or health plan's compliance is rendered impossible due to matters beyond its control which are not caused by it.
(2) No health care entity or health plan operating in the state shall be in violation of this section for any claim (i) initially submitted more than ninety (90) days after the service is rendered, or (ii) resubmitted more than ninety (90) days after the date the health care provider received the notice provided for in section 27-18-61(b); provided, however, this exception shall not apply in the event compliance is rendered impossible due to matters beyond the control of the health care provider and were not caused by such health care provider.
(3) No health care entity or health plan operating in the state shall be in violation of this section while the claim is pending due to a fraud investigation by a state or federal agency.
(4) No health care entity or health plan operating in the state shall be obligated under this section to pay interest to any health care provider or policyholder for any claim if the director of the department of business regulation finds that such entity or plan is in substantial compliance with this section. A health care entity or health plan seeking such a finding from the director shall submit such documentation as the director shall require. A health care entity or health plan which is found to be in substantial compliance with this section shall thereafter submit such documentation as the director may require on an annual basis for the director to assess ongoing compliance with this section.
(5) A health care entity or health plan may petition the director for a waiver of the provision of this section for a period not to exceed ninety (90) days in the event the health care entity or health plan is converting or substantially modifying its claims processing systems.
(f) For purposes of this section, the following definitions shall apply:
(1) "Claim" means: (i) a bill or invoice for covered services; (ii) a line item of service; or (iii) all services for one patient or subscriber within a bill or invoice.
(2) "Date of receipt" means the date the health care entity or health plan receives the claim whether via electronic submission or as a paper claim.
(3) "Health care entity" means a licensed insurance company or nonprofit hospital or medical or dental service corporation or plan or health maintenance organization, or a contractor as described in section 23-17.13-2(B), that operates a health plan.
(4) "Health care provider" means an individual clinician, either in practice independently or in a group, who provides health care services, and otherwise referred to as a non-institutional provider.
(5) "Health care services" include, but are not limited to, medical, mental health, substance abuse, dental and any other services covered under the terms of the specific health plan.
(6) "Health plan" means a plan operated by a health care entity that provides for the delivery of health care services to persons enrolled in such plans through:
(i) arrangements with selected providers to furnish health care services; and/or
(ii) financial incentive for persons enrolled in the plan to used the participating providers and procedures provided for by the health plan.
(7) "Policyholder" means a person covered under a health plan or a representative designated by such person.
(8) "Substantial compliance" means that the health care entity or health plan is processing and paying ninety-five percent (95%) or more of all claims within the time frame provided for in section 27-18-61(a) and (b).
(g) Any provision in a contract between a health care entity or a health plan and a health care provider which is inconsistent with this section shall be void and of no force and effect.
SECTION 5. This act shall take effect September 30, 2001.