ISSUED: MARCH 28, 20001
FOR IMMEDIATE RELEASE
MVP HEALTH PLAN AGREES TO PAY $33,800 FOR
PROMPT PAY VIOLATIONS
Superintendent of Insurance Neil D. Levin today announced that MVP Health Plan has agreed to pay a $33,800 fine for violations of the states Prompt Pay Law, failure to maintain complete claim files and for failure to respond to the Departments requests for information in a timely manner.
"The Prompt Pay Law was enacted to guarantee that consumers and providers are paid in a timely manner. The Department demands that health insurers continue to make this a priority and we will continue to fine companies that evade the law," said Levin.
By signing the stipulation, MVP Health Plan also agrees to put corrective measures in place that will ensure compliance with the states Prompt Pay Law, compliance with the standards for timely responses to Department requests for information and the maintenance of complete records of all claims. Under the Prompt Pay Law, MVP Health Plan must also pay interest on the late claims at the rate of 12 percent per year, or the corporate tax rate that is set by the Commissioner of Taxation and Finance, depending on which is greater.
The Prompt Pay Law requires all health insurers to pay undisputed health insurance claims within 45 days of receipt -- ensuring the prompt, fair and equitable payment of patient and provider claims. The law includes safeguards against fraud by making exceptions for claims that insurers believe are fraudulent and in cases where the payment obligation on the claim is not immediately clear.
The Department has
received more than 63,500 prompt pay complaints since the law went into effect in January
1998. Consumers who have a prompt payment complaint can call the Departments
toll-free hotline at 1-800-358-9260.