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Glossary
Prompt Pay Laws

What are Prompt Pay Laws?

Prompt pay laws are state and federal regulations that require health insurance companies to process and pay claims within specified timeframes, typically 30-45 days for clean claims. These laws establish penalties for late payments, including interest charges and fines, to ensure timely reimbursement to healthcare providers. Most states have their own prompt pay statutes with varying requirements and enforcement mechanisms.

Why prompt pay laws matter

  • Ensures timely payments: Prevents insurance companies from delaying provider reimbursements
  • Protects provider cash flow: Helps healthcare facilities maintain financial stability
  • Reduces billing disputes: Creates clear timelines and penalties for payment processing

How Solace can help

A Solace advocate can help you understand how prompt pay laws affect your medical bills, assist providers in addressing delayed insurance payments, and navigate situations where slow claims processing impacts your care. Advocates can also help file complaints with state insurance departments when insurers violate prompt pay requirements.