The Missouri House and Senate passed legislation yesterday that will increase the rate at which health insurance companies pay hospitals. There are now time requirements for health service providers to send health insurance companies information on claims. The new legislation also sets time requirements for insurers to pay physicians and hospitals.
In addition, both the House and Senate bills will enact financial penalties for insurance companies that do not make claim payments within 45 days and will ban companies from suspending payments on claims. In return, claims will include specific definitions of what information is necessary for health care providers to submit to insurance companies to receive their payment.
The bill is a result of the administrative headaches between health care providers and health insurance companies in Missouri. Hospitals and medical clinics have complained of large gaps in time from when services are provided until they receive payment. But health insurance companies counter that the process would be accelerated if health care providers ensured all claims were valid, properly submitted and contained all of the required information.
Truly then, the bill is a beautiful thing.
According to the Associated Press and the Kansas City Star, Missouri’s Department of Insurance, Financial Institutions & Professional Registration released a report last month finding over $500 million in outstanding claims at 69 Missouri hospitals. A quarter of those claims were 90 days old.
The report has spurred bipartisan action among politicians and the bill received absolutely zero opposition. Sometimes, everything just works out in the world of politics. (Insert sarcastic grin.)