FOR IMMEDIATE RELEASE
DEPARTMENT LEVIES OVER $4 MILLION IN PROMPT PAY VIOLATIONS
Superintendent of Insurance Gregory V. Serio today announced that the Department has finalized another round of fines against health insurers and HMOs for violating the states Prompt Pay Law. The 22 insurers have been fined a total of $ 4,025,400 for failing to pay their claims on time.
"The Department is committed to ensuring that health insurers meet their obligation to pay undisputed claims in a timely fashion and we will continue to penalize all health insurers for failure to do so," said Serio. "The Department closely monitors the claims performance of New Yorks insurance industry and the health industry can expect the level of fines to increase until all companies are in compliance with the law."
The Prompt Pay Law, which went into effect in January 1998, requires all health insurers to pay undisputed health insurance claims within 45 days of receipt ensuring the timely payment of patient and provider claims.
The fines by company are as follows:
|American Medical & Life Co.||1,000|
|Empire Healthchoice, Inc.||11,100|
|Healthcare Underwriters Mutual Ins. Co.||9,750|
|Independent Health Association||39,800|
|Kaiser Foundation Health Plan||65,000|
Consumers and providers with prompt payment complaints can call the Departments toll-free hotline at 1-800-358-9260.