MI SB0546

Replaces the flat 12% annual interest rate on late insurance claim payments with a tiered penalty structure: 1.5% per month for the first 30 days late, 2% per month for 31-90 days late, and 4% per month for payments more than 90 days late

Reduces the deadline for health plans to pay clean claims from 45 days to 30 days after receipt, with the same tiered interest penalties applying to late payments

Shortens the time period for health professionals and providers to correct claim defects from 45 days to 30 days after receiving notice of issues

Requires insurers beginning January 1, 2027 to annually report on their websites: the number of claims paid within 60 days, the number of claims paid late, and the total interest paid for untimely claim payments

Applies to both general insurance claims under section 2006 and personal protection insurance (no-fault auto) benefits under section 3142