Senate tightens timelines for insurer payments to speed hospital reimbursements

The Senate approved a bill (Substitute Senate Bill 5845) updating timelines and accountability for payment of health-care claims. Sponsor Senator Slatter and floor manager Senator Schlatter framed the bill as a negotiated update to existing law so that all clean claims are paid within 30 days and carriers cannot rely on the previous 5% exception to delay large or costly claims.

Senator Slatter said the change is intended to make payment practices predictable and stabilize hospitals and clinics, especially in rural communities, without increasing patient costs. An adopted amendment (0591) specifies timing for additional information requests, extends carrier timelines if providers fail to respond within certain windows, and allows the Office of the Insurance Commissioner to pursue administrative remedies for claims unresolved beyond 90 days.

Supporters described months of negotiation with carriers and providers to arrive at timelines they could accept. The Senate recorded a constitutional majority and the bill was declared passed.

Why it matters: Hospital and provider groups told sponsors that delayed payments create cash-flow and viability problems. The bill attempts to remove uncertainty in payment timelines and reduce administrative friction.

What’s next: The bill was declared passed and will proceed to enrollment and final enactment.