Utah imposes the nation's highest interest rate on late insurance claim payments at 18% annually. This extraordinary penalty reflects the state's commitment to prompt payment of clean claims.
Utah Code §31A-26-301.6 Payment Requirement
Utah Code §31A-26-301.6 requires health insurers to pay or deny clean claims within 30 days of receipt. This applies to both electronic and paper submissions. The 30-day period begins when the insurer receives the complete claim.
18% Annual Interest—The Highest Rate in the Nation
When an insurer fails to pay a clean claim within 30 days, Utah law imposes 18% annual interest on the unpaid amount, accruing from day 31 onwards. This is the highest state interest rate in the United States and significantly compensates for payment delays.
Why Utah Has an 18% Annual Interest Rate
Utah's 18% interest rate reflects the state's strong policy requiring prompt payment. This high rate incentivizes insurers to meet the 30-day deadline and compensates providers for the time value of money when claims are delayed.
Incomplete Claims and Resubmission
If you submit an incomplete claim, the insurer must identify deficiencies within 10 business days. Once you resubmit with complete information, a new 30-day payment period and interest clock begin.
Utah Insurance Department Enforcement
The Utah Insurance Department (UID) enforces prompt pay requirements. Pattern violators are subject to market conduct reviews. You can file a complaint at insurance.utah.gov if an insurer violates timely filing requirements.
How to Collect 18% Annual Interest on Late Utah Claims
- Document the claim submission date with proof of insurer receipt.
- Calculate 18% annual interest from day 31 on the unpaid claim amount.
- Send a written demand to the insurer citing Utah Code §31A-26-301.6 with the interest calculation.
- File a UID complaint at insurance.utah.gov if the demand is not met within 15 days.
Altair automatically tracks Utah claims and calculates the maximum 18% interest owed.
Frequently Asked Questions
Why does Utah have an 18% annual interest rate on late claims—the highest in the nation?
Utah's 18% rate reflects the state's strong policy enforcing prompt payment of clean claims. This is the highest state rate nationwide.
How do I file a Utah Insurance Department prompt pay complaint?
File a complaint at insurance.utah.gov. Include documentation of the claim, the 30-day deadline, and the amount of unpaid interest.
When does the 30-day clock start in Utah?
The 30-day period begins when the insurer receives a complete and clean claim. Once you resubmit with missing information, the clock restarts.
Related Utah Insurance Topics
- Utah Balance Billing Protections
- Utah Surprise Billing Protections
- Utah Prior Authorization Rules
- All State Billing Laws