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

Yes. Virginia's prompt-pay provisions (the Ethics and Fairness in Carrier Business Practices Act, §38.2-3407.15) require carriers to pay clean claims within a set window or pay interest.

The key rules

• Clean claims are generally due within 40 days of receipt
• Late payment accrues statutory interest on the overdue amount (confirm the current rate)
• Carriers must also follow fair claim-handling standards, so prompt-pay pairs with broader business-practice obligations
• Applies to state-regulated commercial carriers

How to use it

• Fix the receipt date and measure the 40-day window
• Calculate interest from the due date and request it in writing
• Cite §38.2-3407.15 (Ethics and Fairness Act) when raising it with the carrier
• Escalate patterns to the Virginia State Corporation Commission Bureau of Insurance

Confirm the current interest rate; the 40-day window is the well-established shape. 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 Virginia payers owe you.

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