What do prompt payment laws require from insurance companies?

Prompt payment laws are regulations that require insurance companies to process and pay claims within a specific time frame. These laws are designed to ensure that healthcare providers receive timely reimbursement for services rendered, thereby maintaining the financial viability of healthcare practices and ensuring that patients have access to necessary medical services without undue delay.

The laws outline strict timelines for how long an insurance company has to respond to a claim submission, whether that response involves payment, denial, or request for additional information. This helps to streamline the claims process and mitigate financial strain on healthcare providers, contributing to a more efficient revenue cycle.

In contrast, the other options do not align with the primary intent of prompt payment laws. Discount provisions, flexible billing options, or coverage of all healthcare services are not requirements set forth by these laws. Instead, their focus is squarely on the efficient processing and payment of claims to promote a faster flow of funds within the healthcare system.