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Bill

HB 739

Health Insurance - Prompt Payment of Claims - Requirements

2026 Regular Session

HB 739 mandates Maryland health insurers pay valid claims within specified timeframes, establishing enforcement penalties for non-compliance to improve payment speed and provider cash flow.

Hearing 2/19 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 739

Legislative bill overview

HB 739 establishes requirements for health insurance companies to process and pay claims within specified timeframes. The bill creates enforceable standards for "prompt payment" of insurance claims, likely including penalties for insurers that fail to meet these deadlines. This represents an effort to standardize claim processing speed across Maryland's health insurance market.

Why is this important

Delayed claim payments directly affect patients' access to care and their financial stability, as delayed reimbursements to providers can result in increased patient billing and collection efforts. Insurance companies' claim processing speeds vary widely, and without standardized requirements, consumers and healthcare providers have inconsistent experiences. Clear statutory timelines create accountability and may reduce the administrative burden on healthcare providers waiting for payment.

Potential points of contention

  • Insurance industry cost concerns: Insurers may argue that strict timelines increase operational costs and administrative complexity, potentially leading to higher premiums for consumers
  • Definition of "prompt payment": Disagreement likely exists over what constitutes reasonable timeframes (e.g., 30 days vs. 15 days) and whether exceptions should apply to complex claims requiring additional review
  • Enforcement mechanism and penalties: Questions about whether penalties are sufficient to ensure compliance or if they're so burdensome they create unintended market effects

Compiled from official sources — confirm details with the bill’s official record.

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