Prompt-Pay Interest Calculator
Every billing tool on the internet tells you what you're losing. This one tells you what you're owed. Most states require insurers to pay clean claims within a statutory deadline and to pay interest — up to 18% annually — when they're late. Almost no practice ever invoices it. Enter your state, the claim amount and the dates, and see the interest with the statute to cite.
How to actually collect it
1. Prove the clock. Interest runs from your clean-claim submission date — clearinghouse acceptance timestamps are your evidence, and they're already sitting in your system.
2. Invoice it with the citation. Send the payer the calculation and the statute reference from this tool. Some payers pay interest automatically; most pay only when asked in writing.
3. Escalate patterns. Chronic late payers respond to documented complaints to the state insurance regulator — Georgia, Washington and Pennsylvania have real enforcement histories.
Full state-by-state rules live in our 2026 state regulations guide, and your state's complete billing picture is in our state guides.
Prompt-pay interest rates by state (2026)
Statutory annual interest owed on clean claims paid past each state's deadline. Rates and deadlines vary; some states use escalating or prime-linked rates. Use the calculator above for the exact figure and statute citation. Last updated July 3, 2026.
| State | Interest rate (annual) | Clean-claim deadline |
|---|---|---|
| Loading state rates… | ||
Deadlines shown are for electronic claims where states differ from paper. This table is a summary for orientation only — always confirm the current statute before invoicing. Full detail sits in our 2026 state regulations guide.
Frequently asked questions
What is prompt-pay interest?
Most states require insurers to pay clean claims within a statutory deadline — commonly 30 to 45 days — and to pay interest on claims paid late. Interest rates range from around 9% to 18% annually depending on the state. Providers are entitled to this interest but rarely calculate or invoice it.
How much interest does an insurance company owe on a late claim?
It depends on your state. Statutory prompt-pay interest ranges from about 9% (Illinois) to 18% (Texas, Maine) per year. The interest is calculated on the claim amount for the number of days the payer was past the state deadline. Enter your figures in the calculator above to see the exact amount and the statute to cite.
When does prompt-pay interest start accruing?
Interest starts the day after the statutory deadline passes — typically 30 to 45 days from the date the payer received your clean claim. It accrues each day the claim remains unpaid past that deadline until the day payment is made.
Do insurers have to pay prompt-pay interest automatically?
In many states the law requires insurers to pay interest automatically, without the provider requesting it. In practice, most payers only pay interest when the provider calculates it, invoices it with the statute citation, and follows up. Automatic payment is the legal standard but not the common reality.
Do prompt-pay laws apply to self-funded (ERISA) plans?
Generally no. State prompt-pay laws apply to state-regulated, fully insured commercial plans (and in some states Medicaid MCOs). Self-funded ERISA employer plans are governed by federal law and are usually exempt from state prompt-pay statutes. Medicare has its own separate federal prompt-payment rules requiring interest on clean claims not paid within 30 days.
Which states have the highest prompt-pay interest rates?
Texas and Maine sit at the top with 18% per year. Several states — including California, Connecticut, Hawaii and Mississippi — are around 15%. At the lower end, Illinois is 9% and Indiana is near 8%. A handful of states, such as Idaho, have no general statutory interest remedy.
What is a clean claim?
A clean claim is one submitted with all required information and no defects, so the payer can process it without asking for more documentation. Prompt-pay deadlines and interest only run against clean claims — if the payer legitimately requests missing information within the allowed window, the clock can reset.
How do I actually collect prompt-pay interest?
Document the clean-claim submission date with clearinghouse timestamps, calculate the interest owed under your state statute, invoice the payer with the statute citation, and escalate chronic offenders to your state insurance regulator. Some payers pay interest automatically; most only pay when asked.
