Connecticut House Bill HB05691

Connecticut 2021 Regular Session

• Introduced: 1/27/21
• Refer: 1/27/21

Caption

An Act Requiring Prompt Payment Of Reimbursements To Health Care Providers.

Impact

If passed, the bill would enhance the rights of health care providers by providing them with the entitlement to interest on outstanding payments that are not reimbursed in a timely manner. This provision serves as an incentive for health carriers and associated organizations to expedite their payment processes. The implementation of this bill would likely lead to more predictable cash flow for health care providers, enabling them to manage their operations more effectively. Overall, it is anticipated that the bill will improve financial interactions between health care providers and insurers, fostering a more reliable payment environment.

Summary

House Bill 05691 aims to amend existing statutes to ensure that health carriers, independent practice associations, and physician-hospital organizations are required to promptly reimburse health care providers for services rendered. The proposed legislation addresses a common concern among health care providers regarding delayed payments, which can adversely affect their financial stability and ability to deliver timely care to patients. By mandating prompt reimbursement, the bill seeks to safeguard the financial interests of health care providers while promoting better health care delivery in the state.

Contention

Despite the positive intentions behind the bill, there may be concerns regarding its potential implications for health carriers and their capacity to manage operational costs related to compliance with the new reimbursement timelines. Health insurers may argue that strict requirements for prompt payment could lead to increased administrative burdens and costs, which could ultimately trickle down to consumers in the form of higher premiums. The discussions surrounding the bill may bring attention to the balance that must be achieved between protecting provider interests and ensuring the sustainability of health insurance operations.