How should interest be calculated on an overdue claims payment?
Verification of timeliness is calculated from the date of the first date receipt stamp through the end of the regulatory required date (e.g. 30th calendar day for Medicare clean claims from unaffiliated providers and the 30th or 45th working day for California commercial health plan claims). Interest is calculated and paid from the first calendar day following the date payment was due through the date the check is issued and mailed. The interest amount is calculated at the applicable government rate in effect for the time period the claim is received for payment. For Medicare claims the interest rate changes every six months and can be found in the Federal Register, Department of Treasury under “Prompt Payment Interest Rate”. For Commercial claims (California health plans) the current interest rate is 10% per annum (greater of $15.00 or 10% for claims involving emergency services).
