2014 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 17A - Health Benefit Plans 17A.17A-730 Payment of interest for failing to pay, denying, or settling a clean claim as required.
Download as PDF
304.17A-730 Payment of interest for failing to pay, denying, or settling a clean
claim as required.
(1)
(2)
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 pay interest according to the following schedule on the
amount of the claim that remains unpaid:
(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 percent (12%) per annum shall accrue from the date payment was
due under 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 eighteen percent (18%) per annum shall accrue from the date payment
was 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%) per annum shall accrue from the date that payment was due under
KRS 304.17A-702.
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 any claim for that interest to be made by the provider filing the
original claim. The interest obligation otherwise imposed by this section shall
not apply if the failure to pay, deny, or settle a claim is due to, or results from,
in whole or in part, acts or events beyond the control of the insurer, including
but not limited to acts of God, natural disasters, epidemics, strikes or other
labor disruptions, war, civil disturbance, riot, or complete or partial disruptions
of facilities.
Effective:July 15, 2002
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.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.