HB 865

HOUSE BILL 865
     J5  6lr2037
     By: Delegate Cullison
     Introduced and read first time: February 4, 2026
     Assigned to: Health
  A BILL ENTITLED
1 AN ACT concerning
2Health Insurance – Remittance Advice – Interest on Late–Paid Claims
3 FOR the purpose of requiring insurers, nonprofit health service plans, and health
4     maintenance organizations that owe interest on claims under a certain provision of
5     law to provide certain remittance advice that separately identifies and itemizes the
6     interest owed claims; and generally relating to late–paid health insurance claims.
7 BY repealing and reenacting, with amendments,
8Article – Insurance
9Section 15–1005(g)
10Annotated Code of Maryland
11(2017 Replacement Volume and 2025 Supplement)
12SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
13 That the Laws of Maryland read as follows:
14Article – Insurance
15 15–1005.
16(g)    (1)     If an insurer, nonprofit health service plan, or health maintenance
17 organization fails to pay a clean claim for reimbursement or otherwise violates any
18 provision of this section, the insurer, nonprofit health service plan, or health maintenance
19 organization shall pay interest on the amount of the claim that remains unpaid 30 days
20 after receipt of the initial clean claim for reimbursement at the monthly rate of:
21(i)     1.5% from the 31st day through the 60th day;
22(ii)    2% from the 61st day through the 120th day; and
23(iii)   2.5% after the 120th day.
     EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
  [Brackets] indicate matter deleted from existing law.
  *hb0865*
2HOUSE BILL 865
1(2)   The interest paid under this subsection shall be included in any late
2 reimbursement without the necessity for the person that filed the original claim to make
3 an additional claim for that interest.
4(3)    AN INSURER, A NONPROFIT HEALTH SERVICE PLAN, OR A HEALTH
5 MAINTENANCE ORGANIZATION THAT OWES INTEREST UNDER THIS SUBSECTION
6 SHALL PROVIDE REMITTANCE ADVICE TO THE PERSON THAT FILED THE ORIGINAL
7 CLAIM THAT SEPARATELY IDENTIFIES AND ITEMIZES THE INTEREST.
8SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
9 October 1, 2026.