State Prompt Pay Statutes — Payment Deadlines and Interest Rates
Prompt pay statute reference for all 50 states plus the District of Columbia. Each entry includes the clean-claim payment deadline for electronic and paper claims, the applicable interest rate or penalty for late payment, the governing statute and regulation citation, and notes on ERISA preemption carve-outs, Medicare Advantage applicability, and managed Medicaid variations. Statute citations link to primary source text.
State prompt pay statutes apply to fully-insured commercial health insurance plans regulated by the state insurance commissioner. They do not apply to self-funded ERISA plans (ERISA §514(a) preemption) or to traditional Medicare. Medicare Advantage plans are subject to federal prompt pay rules at 42 CFR §422.520 rather than state statutes, though some states have extended their prompt pay requirements to MA plans through contract requirements with the state Medicaid agency where applicable.
Representative statutes: California Health & Safety Code §1371 — 15 business days for electronic, 45 calendar days for paper; 15% per annum interest on late electronic claims, 18% on paper. New York Insurance Law §3224-a — 30 days electronic, 45 days paper; interest at the rate set by the superintendent (currently 12% per annum). Texas Insurance Code §843.338 / §1301.103 — 30 days electronic, 45 days paper; 18% per annum interest plus attorney fees for contested claims. Florida Statutes §627.6131 — 35 days electronic, 90 days paper; 15% per annum interest.
Prompt pay interest is a recoverable amount — it is not automatically added by payers. Providers must demand it with a written notice citing the statute and calculated amount. The Prompt Pay Interest Calculator generates a demand letter with the applicable statute citation and interest calculation.