IL HB3327

Amends Section 368a of the Illinois Insurance Code regarding timely payment for health care services.

Changes the interest rate penalty for late payments from 9% per year to 9% semiannually for insurers, health maintenance organizations, managed care plans, preferred provider organizations, third party administrators, independent practice associations, and physician-hospital organizations.

Applies to periodic payments (prospective capitation payments not requiring claims or bills) and other health care service payments that fail to meet specified deadlines.

Interest accrues from the date payment was due to the date of late payment, with minimum threshold of $1 and interest payments due within 30 days after the late payment.

Grants the Department of Insurance authority to issue cease and desist orders, fines, or penalties against independent practice associations and physician-hospital organizations that violate payment requirements.