This bill amends the Michigan Insurance Code of 1956, specifically sections 2006 and 3142, to update the requirements for timely payment of insurance claims and the interest owed on overdue payments. Key changes include the establishment of a new interest rate structure for late payments, which specifies 1.5% per month for the first 30 days, 2% for payments 31 to 90 days late, and 4% for payments more than 90 days late. Additionally, the bill mandates that insurers must pay benefits within 30 days after receiving reasonable proof of loss, and it clarifies the conditions under which claims are considered timely paid.

The bill also introduces new reporting requirements for insurers, which will take effect starting January 1, 2027. Insurers will be required to report on their websites the number of claims paid within the specified time frame, the number of claims that were not paid timely, and the total amount of interest paid for late claims. Furthermore, the bill outlines the procedures for health plans in processing claims, including the definition of a "clean claim" and the obligations of health professionals and facilities in billing for services rendered. Overall, these amendments aim to enhance the efficiency and transparency of the claims process in Michigan's insurance system.

Statutes affected:
Senate Introduced Bill: 500.2006, 500.3142