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

Yes. New Jersey's prompt-pay law (the Health Claims Authorization, Processing and Payment Act, N.J.S.A. 17B:30 / 17:48 and DOBI rules) requires payers to pay clean claims within a set window or pay interest.

The key rules

• Clean electronic claims are generally due within 30 days; paper claims within 40 days
• Late payment accrues statutory interest, commonly cited around 12% per annum, on the overdue amount
• The payer must acknowledge, then pay or deny within the window
• Applies to state-regulated commercial insurers, HMOs, and dental plans

How to use it

• Use the electronic vs paper distinction to apply the correct 30- or 40-day window
• Calculate interest from the due date and request it in writing
• Cite the New Jersey prompt-pay statute / DOBI rules when raising it
• Escalate patterns to the New Jersey Department of Banking and Insurance (DOBI)

Confirm the current interest rate and the electronic vs paper day-counts. 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.

See the revenue New Jersey payers owe you.

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