MD HB865

Insurers, nonprofit health service plans, and health maintenance organizations that owe interest on late-paid clean claims must provide remittance advice to the original claimant that separately identifies and itemizes the interest owed.

Existing law requires interest on unpaid clean claims beginning 30 days after receipt, at monthly rates of 1.5% (days 31–60), 2% (days 61–120), and 2.5% (after day 120).

Interest must be included automatically in any late reimbursement without requiring the claimant to file a separate claim for the interest amount.

Amends Section 15–1005(g) of the Maryland Insurance Article by adding a new transparency requirement for remittance advice documentation.

Effective date is October 1, 2026.