This bill amends the Michigan Insurance Code of 1956, specifically section 2006, to enhance the requirements for timely payment of insurance claims and the associated interest on unpaid claims. It mandates that insurers must pay benefits to insured individuals or third-party tort claimants promptly, or alternatively, pay 12% interest on claims not settled in a timely manner. The bill clarifies that insurers cannot be deemed to have committed an unfair trade practice if they are found liable for a claim by a court and subsequently pay the required interest. Additionally, it establishes specific timelines for insurers to provide satisfactory proof of loss and outlines the conditions under which claims are considered paid on time.

The bill also introduces new provisions regarding health plans and their payment processes for claims submitted by health professionals and facilities. It specifies that clean claims must be paid within 45 days, and if not, they will accrue interest at a rate of 12% per annum. Health plans are required to notify providers of any issues with claims within 30 days and must provide a clear explanation if they attempt to retrieve payments made to providers after 90 days, unless fraud is involved. The bill aims to streamline the claims process and ensure fair treatment of health care providers while imposing penalties for violations of these new regulations.

Statutes affected:
House Introduced Bill: 500.2006