Prompt Pay Interest Calculator

The Prompt Pay Interest Calculator computes interest accrued on delayed insurance payments and generates a demand letter citing the governing statute. Select the payer type (commercial fully-insured, Medicare Advantage, self-funded ERISA, Medicaid managed care) and state, enter the clean claim date and the date payment was actually received or the current date if still unpaid, and the calculator returns the interest amount under the applicable statute and daily accrual rate.

State prompt pay statutes require insurers to pay clean electronic claims within a set window — typically 30 days for electronic claims and 45 days for paper claims, though windows vary from 15 to 45 days depending on the state. Late payment triggers an interest penalty. California: 15 business days (electronic), 1% per month (Health & Safety Code §1371). New York: 30 days (electronic), 12% per annum (Insurance Law §3224-a). Texas: 30 days (electronic), 18% per annum (Insurance Code §843.338). Florida: 35 days (electronic), 15% per annum (F.S. §627.6131).

ERISA self-funded plans: state prompt pay statutes do not apply to ERISA self-funded plans (ERISA §514(a) preemption). For self-funded plans, the demand letter cites ERISA §503 and DOL regulations at 29 CFR §2560.503-1, which require claims to be adjudicated within 30 days (pre-service) or 60 days (post-service) with one 15-day extension for post-service with notice. Interest on ERISA late payments is not statutory — it is sought as equitable relief in the event of litigation.

• State prompt pay statutes — full reference for all 50 states
• Appeal Letter Builder — demand letters for underpayments and denials
• Timely filing calculator