Arkansas distinguishes between electronic and paper claim payment deadlines, providing faster processing for electronic submissions. Understanding these timelines ensures you meet requirements and collect interest on late payments.
Arkansas ACA §23-79-1501 Payment Deadline
Arkansas ACA §23-79-1501 requires health insurers to pay clean claims within different timeframes based on submission method: 30 days for electronic claims and 45 days for paper claims. This two-tier system incentivizes electronic submission.
Electronic vs. Paper Claims
Electronic claims receive faster processing with a 30-day payment deadline. Paper claims have a 45-day deadline. This 15-day difference reflects the faster processing of electronic submissions.
10% Annual Interest on Late Claims
When an insurer fails to pay a clean claim within the applicable deadline, Arkansas law imposes 10% annual interest on the unpaid amount, accruing from the day payment was due.
Incomplete Claims and Resubmission
If you submit an incomplete claim, the insurer must notify you within 10 business days. Once you resubmit with complete information, a new payment period begins for both payment and interest calculation purposes.
Arkansas Insurance Department Enforcement
The Arkansas Insurance Department (AID) enforces prompt pay requirements and accepts complaints online. You can file a complaint if an insurer violates timely filing requirements or refuses to pay interest.
How to Collect 10% Annual Interest on Late Arkansas Claims
- Identify submission method (electronic 30 days, paper 45 days) and document deadline date.
- Calculate 10% annual interest on the unpaid claim amount from the due date.
- Send a written demand to the insurer citing ACA §23-79-1501 with the interest calculation.
- File an AID complaint if the demand is not resolved within 15 days.
Altair tracks Arkansas claims by submission method and calculates interest automatically.
Frequently Asked Questions
What is Arkansas's different deadline for electronic vs. paper insurance claims?
Arkansas ACA §23-79-1501 requires 30-day payment for electronic claims and 45-day payment for paper claims. The 15-day difference incentivizes electronic submission.
What interest applies to late Arkansas claims?
Arkansas law imposes 10% annual interest on claims not paid within the applicable deadline (30 days for electronic, 45 days for paper), accruing from the due date.
How do I file an Arkansas Insurance Department prompt pay complaint?
The Arkansas Insurance Department accepts complaints online. File if an insurer fails to meet the payment deadline or refuses to pay the required 10% interest.
Related Arkansas Insurance Topics
- Arkansas Balance Billing Protections
- Arkansas Surprise Billing Protections
- Arkansas Prior Authorization Rules
- All State Billing Laws