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

Yes. Maryland's prompt-pay law (Md. Insurance Code §15-1005) requires carriers to pay clean claims within a set window or pay interest.

The key rules

• Clean electronic claims are generally due within 30 days of receipt; paper claims within a longer window
• Late payment accrues interest, commonly cited around 1.5% per month on the overdue amount
• The carrier must pay or properly deny within the window
• Applies to state-regulated commercial carriers

How to use it

• Fix the receipt date and measure the 30-day electronic window
• Calculate the monthly interest on late clean claims and request it
• Cite Md. Insurance Code §15-1005 when raising it with the carrier
• Escalate patterns to the Maryland Insurance Administration

Confirm the current interest rate and day-count. 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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