What is Arizona Timely Payment Law?
Arizona Revised Statutes Section 20-3102 requires insurers to pay or deny clean claims within 30 days of receipt. If a claim is partially disputed, the insurer must pay the undisputed portion within 30 days and provide a written explanation for any disputed amount. Unpaid claims accrue interest at the rate set by Arizona law, currently 10% annually under ADOI Bulletin 2006-02.
Interest on Late Claims
Arizona law requires insurers to pay interest on late claims at 10% per year. Interest accrues from the 31st day after receipt through the date of payment. This penalty encourages timely claim processing and compensates providers for delayed cash flow.
Incomplete Claims
If a claim is incomplete, the insurer must request missing information within 10 business days of receipt. A new 30-day payment period begins when the provider submits complete information. Insurers and providers should collaborate to resolve missing information quickly to avoid delays.
Electronic Claim Submission
Arizona's timely payment requirement applies to both paper and electronic claims. Electronic claims are subject to the same 30-day deadline. Insurers must acknowledge receipt of claims and provide clear status updates on processing.
Enforcement and Complaints
The Arizona Department of Insurance and Financial Institutions (DIFI) enforces the timely payment law. Providers and patients may file complaints with DIFI for violations, including patterns of late payment.
Track Arizona Timely Filing Deadlines Automatically
Altair monitors state billing deadlines and calculates interest accruals by payer. See how it works.
Frequently Asked Questions
What happens if an Arizona insurer misses the 30-day deadline?
If an Arizona insurer fails to pay or deny a clean claim within 30 days of receipt, they owe 10% annual interest on the unpaid amount. Interest accrues from day 31 through the date of payment or denial. Providers can demand this interest in writing.
Does Arizona have electronic claim submission requirements?
Arizona law (ARS §20-3102) applies the 30-day payment requirement to both paper and electronic claims. Electronic claims are subject to the same timelines as paper claims. Insurers must acknowledge receipt of claims and provide clear status updates.
How to Collect Interest on a Late Arizona Claim
- Document the claim submission date and receipt confirmation — Obtain proof of when you submitted the claim and when the insurer received it. This establishes the start of the 30-day deadline.
- Send a written demand for payment at 10% annual interest — Notify the insurer in writing that the claim is past due and request payment plus 10% annual interest from the 31st day through the payment date.
- File a complaint with the Arizona Department of Insurance — If the insurer does not respond within 15 days, submit a formal complaint to the Arizona Department of Insurance and Financial Institutions (DIFI).
- Escalate to DIFI investigation for pattern violations — If the insurer has a pattern of missing payment deadlines, request DIFI investigate for systemic violations of the timely payment law.
Disclaimer: State laws change. This reference is current as of April 13, 2026. Consult Arizona Revised Statutes §20-3102, ADOI Bulletin 2006-02, or a healthcare attorney for definitive guidance on your specific situation.