Arizona prompt pay law: deadlines, interest, and how to use it

Yes. Arizona's prompt-pay law (A.R.S. §20-3101 et seq.) requires payers to adjudicate clean claims within a set window and to pay, with remedies and penalties for payers that don't meet the standard.

The key rules

• Clean electronic claims are generally due within about 30 days of receipt; paper claims within a longer window
• Late or improperly handled claims can trigger penalties and interest (confirm the current amount)
• The payer must pay, deny, or request additional information within the window
• Applies to state-regulated commercial payers

How to use it

• Fix the receipt date and measure the ~30-day electronic window
• For late clean claims, request interest/penalty and document the payer's timeline
• Cite A.R.S. §20-3101 et seq. when raising it with the payer
• Escalate patterns to the Arizona Department of Insurance and Financial Institutions

Arizona's interest/penalty specifics are less uniform than a flat annual rate; confirm the current statute before quoting a figure. Prompt-pay rules reach state-regulated (fully insured) commercial plans, not ERISA self-funded employer plans, which are a large share of commercial volume. Medicare and Medicaid pay under their own separate prompt-payment rules. Confirm the current payment window, interest rate, and penalty against the statute or your state insurance department before citing a figure in an appeal, since rates are reset by legislation and by annual DOI rate-setting.

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