Insurance companies that take too long to pay health care claims in Missouri could face financial penalties beginning next year.
Gov. Jay Nixon has signed the so-called “prompt pay” legislation. The legislation sets up time frames for health care providers to submit claims and for insurance companies to pay them. The changes would take effect in 2011.
The Missouri Department of Insurance in 2009 analyzed data from 69 hospitals in compiling a 92-page report that showed more than $500 million in outstanding claims at the hospitals. More than one-fourth of the claims had been unpaid for at least 90 days. By revenue, those hospitals represent more than 70 percent of the hospital market in Missouri. The report can be found online at http://insurance.mo.gov/Contribute20Documents/PromptPayReport.pdf
The state House and Senate approved the prompt-pay legislation without dissent
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