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.

Do prompt-pay laws apply to all insurance plans?

No. State prompt-pay laws apply to state-regulated plans (fully insured commercial plans, and in some states Medicaid MCOs). Self-funded ERISA employer plans follow federal rules and are generally exempt from state prompt-pay statutes. Medicare has its own federal prompt payment rules.

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.

Free tool · First of its kind

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.

State (where the plan is regulated)

Usually the state where the policy was issued

Claim amount ($)

The allowed/paid amount of the late claim

Clean claim submitted

Clearinghouse acceptance date

Paid on (or leave blank if unpaid)

Blank = still unpaid, calculated to today

Submission method

Some states give paper claims longer deadlines

Estimated interest owed on this claim

$0.00

Statutory deadline

—

Days past deadline

—

Interest rate

—

Important: Applies to state-regulated plans only — self-funded ERISA employer plans are generally exempt, and Medicare/Medicaid rules differ. Calculated as simple annual interest from the statutory deadline. Rates marked "verify" reflect statutes with escalating, prime-linked or recently amended rates. This is an informational estimate, not legal advice — confirm against the current statute before invoicing.

Find everything else payers owe you

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.