The bill aims to modernize and clarify the timely payment requirements for health carriers in Washington State, addressing the financial vulnerabilities faced by healthcare providers and facilities due to delays in claims processing. It establishes a new section in chapter 48.43 RCW that mandates health carriers to pay or deny claims for healthcare services within specific timeframes. For clean claims, carriers must act within 30 calendar days, while for non-clean claims, they are required to provide remittance advice within 21 calendar days, detailing the status of the claim and any additional information needed. The bill also introduces interest penalties for carriers that fail to meet these timelines, with rates escalating after 60 days of non-compliance.

Additionally, the bill outlines the responsibilities of health carriers regarding compliance with these provisions and clarifies that they cannot use the actions of third parties as a defense for violations. It specifies that these requirements will apply to health plans filed or renewed after January 1, 2027, and excludes Medicaid managed care plans. The bill also includes a definition of "clean claim" and "remittance advice" to ensure clarity in the claims process. Furthermore, it reenacts and amends existing law to incorporate the new payment standards, thereby enhancing transparency and accountability in the claims payment process.