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HB 865

Health Insurance - Remittance Advice - Interest on Late-Paid Claims

2026 Regular Session Introduced by Bonnie Cullison

Maryland bill requiring health insurers to pay interest on claims paid after specified deadlines, incentivizing faster reimbursement to healthcare providers.

Hearing 2/19 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 865

Legislative bill overview

HB 865 requires health insurers to pay interest on insurance claims that are paid after a specified deadline. The bill establishes penalties for insurers that fail to process and pay valid claims within the required timeframe, with interest accruing on the unpaid balance.

Why is this important

Healthcare providers and facilities often depend on timely claim reimbursement to manage cash flow and operational expenses. Late payments can strain smaller medical practices and delay their ability to pay staff, suppliers, and other obligations. Interest penalties incentivize insurers to process claims faster and compensate providers for the cost of delayed payments.

Potential points of contention

  • Insurer cost concerns: Insurance companies may argue that interest requirements increase their operational costs and could result in higher premiums for consumers
  • Definition of "valid claims": Disputes may arise over what constitutes a valid claim eligible for interest, and whether partial denials trigger interest obligations
  • Compliance timeline feasibility: Insurers might challenge whether the specified payment deadline is realistic given claim complexity, documentation needs, and fraud prevention requirements

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

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