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

Yes. Michigan's prompt-pay provisions (MCL 500.2006 and related insurance code sections) require payers to pay clean claims within a set window or pay interest on the overdue benefit.

The key rules

• Clean claims are generally due within 45 days of receipt
• Late payment accrues statutory interest, commonly cited around 12% per annum, on the overdue amount
• The payer must pay or reasonably dispute the claim within the window
• Applies to state-regulated commercial payers

How to use it

• Fix the receipt date and measure the 45-day window
• Calculate interest at the statutory rate from the due date and request it
• Cite MCL 500.2006 when raising it with the payer
• Escalate patterns to the Michigan Department of Insurance and Financial Services (DIFS)

Confirm the current interest rate and how disputed vs clean claims are treated. 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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