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

Yes. Tennessee's prompt-pay provisions (Tenn. Code §56-7-109 and §56-32-126 for managed care) require payers to pay clean claims within a set window or pay interest.

The key rules

• Clean claims are generally due within about 30 days of receipt (electronic emphasized)
• Late payment accrues statutory interest on the overdue amount (confirm the current rate)
• The payer must pay or properly contest the claim within the window
• Applies to state-regulated commercial payers and managed-care organizations

How to use it

• Fix the receipt date and measure the ~30-day window
• Calculate interest from the due date and request it in writing
• Cite the applicable Tennessee prompt-pay section when raising it
• Escalate patterns to the Tennessee Department of Commerce and Insurance

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.

See the revenue Tennessee payers owe you.

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