HB4429 Summary

• Increases late payment interest rates for health care providers on unpaid bills under the State Prompt Payment Act and Illinois Insurance Code from fixed percentages to the Wall Street Journal Prime Rate plus 4.0% per year, effective after the bill's enactment.

• Applies the new higher interest rate to bills approved under the State Employees Group Insurance Act of 1971 and Article V of the Illinois Public Aid Code, except for pharmacy and nursing facility services or goods.

• Defines "prime commercial rate" as the Wall Street Journal Prime Rate as published from time to time for calculating interest penalties on late payments.

• Requires the State Employees Group Insurance Act health benefit program to be subject to Illinois Insurance Code provisions on late payments and assignability, with specified exceptions regarding direct collection from patients.

• Maintains existing 60-day payment deadlines for most bills and 90-day deadlines under certain state fiscal year provisions, with interest accruing for any unpaid amounts after these periods expire.