MS HB628

Increases interest penalty on overdue health insurance claims from 1.5% to 3% per month, accruing from the day after payment was due until the claim is settled.

Exempts Medicare Advantage and Medicare Advantage Prescription Drug plans from the 3% monthly interest penalty provision.

Adds bad faith damages provision allowing claimants to recover up to three times the unpaid benefit amount if an insurer demonstrates a repeated or deliberate pattern of failing to pay claims when due.

Establishes administrative penalties for insurers with poor claim payment compliance rates: 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.

Clarifies that system errors attributable to the insurer do not change the "clean claim" status, requiring payment within 25-35 days depending on submission format.