MS HB560

Requires insurers to pay in-network health care providers directly when an insured provides written direction that benefits be paid to that provider.

Requires insurers to send payments for out-of-network providers via check, draft, money order, or negotiable instrument payable to both the provider and insured, requiring endorsement from both parties.

Prohibits out-of-network providers from billing or collecting from the insured any amount above the insurer's payment, except for deductibles, coinsurance, copayments, or noncovered services requested by the insured.

Establishes administrative penalties for insurers that fail to pay clean claims timely: up to $10,000 for 85-95% compliance, $10,000-$100,000 for 50-85% compliance, and $100,000-$200,000 for less than 50% compliance.

Effective July 1, 2012.