Are You Getting Paid Interest for Late Payments Made by Insurance Companies?
According to California law, insurers/plans must reimburse uncontested claims no later than 30 working days after you have submitted your claim. HMOs have 45 days. Failure to reimburse in a timely fashion results in the requirement to pay interest on the claim. The plan shall pay the greater of fifteen dollars ($15) per year or interest at the rate of 15 percent per annum beginning with the first calendar day after the 30- or 45-working-day period. It has come to CAMFT’s attention that some plans are not paying the required interest on uncontested late payments. If you are a member who has experienced this, please email CAMFT to help with our advocacy efforts on this issue.