Health Insurance - Remittance Advice - Interest on Late-Paid Claims

HB 865 requires health insurers, nonprofit health service plans, and health maintenance organizations (HMOs) to provide clear remittance advice that separately identifies and itemizes interest owed on late-paid claims. Specifically, it mandates that interest rates apply at 1.5% for claims unpaid 31-60 days, 2% for 61-120 days, and 2.5% after 120 days. This interest is automatically included in the reimbursement payment without requiring claim filers to submit additional claims for the interest. The bill directly affects insurers and the healthcare providers or patients who file claims, ensuring transparency in late-payment calculations. It takes effect October 1, 2026.