MI SB1088

Replaces flat 12% annual interest rate with tiered interest rates for overdue insurance claims: 1.5% per month for first 30 days late, 2% per month for 31-90 days late, and 4% per month for more than 90 days late.

Reduces health plan claim payment deadline from 45 days to 30 days for "clean claims" from health professionals, facilities, and providers, with interest accruing if not paid timely.

Requires insurers to report annually on their websites starting January 1, 2026, including number of timely-paid claims, number of untimely-paid claims, and total interest paid for late payments.

Changes language throughout from "within" to "not later than" for claim payment deadlines in both general insurance claims and personal protection insurance claims.

Applies new tiered interest rate structure to personal protection insurance benefits under MCL 500.3142, replacing the previous 12% annual rate.