2009 Kentucky Revised Statutes Subtitle 17A. Health Benefit Plans 304.17A.730 Payment of interest for failing to pay, denying, or settling a clean claim as required.
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304.17A-730 Payment of interest for failing to pay, denying, or settling a clean
claim as required.
(1) An insurer that fails to pay, deny, or settle a clean claim in accordance with KRS
304.17A-700 to 304.17A-730 and KRS 205.593, 304.14-135, and 304.99-123 shall <br>pay interest according to the following schedule on the amount of the claim that <br>remains unpaid: <br>(a) For claims that are paid between one (1) and thirty (30) days from the date
that payment was due under KRS 304.17A-702, interest at a rate of twelve <br>percent (12%) per annum shall accrue from the date payment was due under <br>KRS 304.17A-702;
(b) For claims that are paid between thirty-one (31) and sixty (60) days from the
date that payment was due under KRS 304.17A-702, interest at a rate of <br>eighteen percent (18%) per annum shall accrue from the date payment was <br>due under KRS 304.17A-702; and
(c) For claims that are paid more than sixty (60) days from the date payment was
due under KRS 304.17A-702, interest at a rate of twenty-one percent (21%) <br>per annum shall accrue from the date that payment was due under KRS <br>304.17A-702.
(2) When paying a claim after the time required by KRS 304.17A-702, the insurer shall
add the interest payable to the amount of the unpaid claim without the necessity for <br>any claim for that interest to be made by the provider filing the original claim. The <br>interest obligation otherwise imposed by this section shall not apply if the failure to <br>pay, deny, or settle a claim is due to, or results from, in whole or in part, acts or <br>events beyond the control of the insurer, including but not limited to acts of God, <br>natural disasters, epidemics, strikes or other labor disruptions, war, civil <br>disturbance, riot, or complete or partial disruptions of facilities.
Effective: July 15, 2002 <br>History: Amended 2002 Ky. Acts ch. 181, sec. 17, effective July 15, 2002. -- Created
2000 Ky. Acts ch. 436, sec. 16, effective July 14, 2000.
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