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

Yes. New York's Prompt Pay Law (Insurance Law §3224-a) requires payers to pay undisputed clean claims within a set window or pay interest, and the state has actively enforced it with penalties against slow payers.

The key rules

• Clean electronic claims are generally due within 30 days; paper claims within 45 days of receipt
• Late undisputed claims accrue interest at a statutory rate (New York's floor is commonly cited at 12% per annum)
• The payer may request additional information within a set window; a proper request can pause the clock, but only if it's legitimate
• Applies to state-regulated commercial insurers and HMOs

How to use it

• Confirm the claim was clean and undisputed, then measure the 30/45-day window from the documented receipt date
• For late payment, calculate interest at the statutory rate and demand it; New York interest is meant to be added automatically
• Watch for pretextual information requests used to reset the clock, and document when the payer already had what it needed
• File prompt-pay complaints with the New York Department of Financial Services, which has a track record of enforcement

The statutory interest rate is set by the superintendent with a floor; confirm the current rate. 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 York payers owe you.

Volari finds the denials and underpayments in your written-off pile. For New York practices, we work on a straightforward fee-based engagement.