Alabama

Alabama Prompt Pay Law

This re Promtpt Pay Lawgulation is directly from the Alabama 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 30 days to pay or deny your claim if filed electronically and 45 days if filed by paper. Anything beyond that will result in a default of the payment of your claim and mandate a 1.5% monthly 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:

30 calendar days after receipt of a
clean claim electronically

45 days after receipt of paper claims

1.5% monthly interest

 

§§ 27-1-17, 27-1-19, 27-21A-23
& 10-4-115 (2001).

Language for your complaint:

Dear Claims Examiner:

The services rendered were billed within the Alabama Insurance guidelines. It has now been beyond 45 working days allowed by Alabama Prompt Pay Law, Section §§ 27-1-17, 27-1-19, 27-21A-23 & 10-4-115 (2001).


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 12% interest annually as mandated by regulation Section §§ 27-1-17, 27-1-19, 27-21A-23 & 10-4-115 (2001).

 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 Alabama Department of Insurance.

Alabama Department of Insurance
PO Box 303351
Montgomery, Alabama 36130-3351

Street Address
201 Monroe Street, Suite 1700
Montgomery, Alabama 36104

Insdept@insurance.alabama.gov

334-269-3550