Michigan

Michigan Prompt Pay Law

This regulation is directly from the Michigan State Department of Insurance
and is specific for manage care/indemnity plans
 

If utilized properly, you will ensure your collections without having to beg and plead

from the desk of:

Mark Studin DC, FASBE(C), DAAPM, DAAMLP


The carriers have 45 days to pay or deny after receipt of a clean claim. Anything beyond that will result in a default of the payment of your claim and mandate a 12% penalty to be paid, by regulation. A telephone call will fall on deft ears, therefore create a paper trail with a demand for payment.

The Law:

45 calendar days after receipt of a
clean claim the bill must be considered for payment

12% per year interest

 

§ 550.1403 (1980)
500,2006 (2002)

Language for your complaint:

Dear Claims Examiner:

The services rendered were billed within the Michigan Insurance guidelines. It has now been beyond 45 working days allowed by Michigan Prompt Pay Law, Section § 550.1403 (1980)
500,2006 (2002)

Since you have violated this regulation we can submit this entire claim for summary judgment or arbitration through our legal counsel.

 We would like to resolve this issue without using legal counsel. If we do go to court, It will cost you both the amount of the claim and attorney fees with 10% interest annually as mandated by regulation Section § § 550.1403 (1980)
500,2006 (2002)

 We request payment within 3 weeks of the date of this letter for the resubmitted bill(s) as prescribed by law. By doing so we will waive the interest due us as described in the regulations previously cited. If we do not receive payment, we will be forced to litigate this matter and also file a complaint with the Michigan Department of Insurance.

Michigan Insurance Department
Office of Financial and Insurance
Regulation (OFIR)
ATTN: Office of the Commissioner
PO Box 30220
Lansing, Michigan 48909-7720

Street Address
Ottawa Building, 3rd Floor
611 W Ottawa
Lansing, Michigan 48933-1070

517-373-0220