Georgia Prompt Pay Law Improved by Amendment

An amendment to an existing prompt payment law in Georgia is getting the attention of both physicians and insurance companies. Scheduled to take effect on Jan. 1, 2013, the amendment will extend prompt payment regulations to third-party administrators (TPAs). Historically, state prompt payment laws apply only to traditional health plans; however, the Georgia amendment would require TPAs to pay clean claims within 15 days if submitted electronically and 30 days if submitted by mail. The American Medical Association and the Medical Association of Georgia support the amendment, indicating that without the law there are no deadlines for prompt payment for TPAs. America’s Health Insurance Plans is opposed to the amendment, believing it runs contrary to existing federal law that exempts self-funded plans from state insurance laws. The two sides are currently in the process of exchanging legal documents and preparing arguments. A lawsuit has been filed in the U.S. District Court in Atlanta.

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