Senate Bill sb2814

    Florida Senate - 2004                                  SB 2814

    By Senator Bennett





    21-716-04

  1                      A bill to be entitled

  2         An act relating to the prompt payment of

  3         medical claims; amending s. 627.613, F.S.;

  4         revising the interest rate on overdue payments

  5         owed by insurers; amending s. 627.6131, F.S.;

  6         providing that an insured, a provider or

  7         provider's representative, or a health insurer

  8         may initiate legal action to enforce the

  9         payment of a claim by an insurer; amending s.

10         641.3155, F.S.; revising the interest rate on

11         overdue payments owed by health maintenance

12         organizations; providing that a subscriber, a

13         provider or provider's representative, or the

14         health maintenance organization may initiate

15         legal action to enforce the payment of a claim

16         by a health maintenance organization; providing

17         an effective date.

18  

19  Be It Enacted by the Legislature of the State of Florida:

20  

21         Section 1.  Subsection (6) of section 627.613, Florida

22  Statutes, is amended to read:

23         627.613  Time of payment of claims.--

24         (6)  All overdue payments shall bear simple interest at

25  the maximum annual rate allowable by law of 10 percent per

26  year.

27         Section 2.  Subsection (18) is added to section

28  627.6131, Florida Statutes, to read:

29         627.6131  Payment of claims.--

30         (18)  An insured, a provider or any representative of

31  the provider, whether or not the provider is under contract

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 2814
    21-716-04




 1  with the health insurer, or the insurer may bring suit in the

 2  courts of this state to enforce this section.

 3         Section 3.  Subsection (6) of section 641.3155, Florida

 4  Statutes, is amended, and subsection (16) is added to that

 5  section, to read:

 6         641.3155  Prompt payment of claims.--

 7         (6)  Payment of a claim is considered made on the date

 8  the payment was mailed or electronically transferred. An

 9  overdue payment of a claim bears simple interest at the

10  maximum annual rate allowable by law of 12 percent per year.

11  Interest on an overdue payment for a claim or for any portion

12  of a claim begins to accrue when the claim should have been

13  paid, denied, or contested.  The interest is payable with the

14  payment of the claim.

15         (16)  A subscriber, a provider or any representative of

16  the provider, regardless of whether the provider is under

17  contract with the health insurer, or the health maintenance

18  organization may bring suit in the courts of this state to

19  enforce this section.

20         Section 4.  This act shall take effect July 1, 2004.

21  

22            *****************************************

23                          SENATE SUMMARY

24    Provides that the interest rate on overdue payments owed
      for medical claims by insurers or by health maintenance
25    organizations is to be the maximum annual rate allowable
      under the law. Provides that an insured, a provider or
26    provider's representative, or a health insurer may
      initiate legal action to enforce s. 627.6131, F.S.,
27    relating to the prompt payment of claims by health
      insurers. Provides that a subscriber, a provider or
28    provider's representative, or the health maintenance
      organization may initiate legal action to enforce s.
29    641.3155, F.S., relating to the prompt payment of claims
      by health maintenance organizations.
30  

31  

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CODING: Words stricken are deletions; words underlined are additions.