MI HB5997

Adds a 300% penalty on top of the claim value when an insurer refuses payment in bad faith and that bad faith is determined by a court, in addition to the existing 12% annual interest requirement.

Requires insurers to specify in writing within 30 days what constitutes satisfactory proof of loss, and establishes 60-day payment timelines after receiving proof of loss.

Applies 45-day payment deadlines for "clean claims" submitted to health plans by health professionals, health facilities, home health care providers, and durable medical equipment providers, with 12% annual interest accruing on late payments.

Allows the insurance director to impose civil fines up to $1,000 per violation (maximum $10,000 aggregate) for violations of health plan payment procedures and prohibits health plans from retaliating against providers who report violations.

Exempts workers' compensation claims, Medicaid claims, and administrative services-only arrangements from these requirements.