2017 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE 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)
(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.
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