What laws require timely payments for clean claims and impose penalties for violations?

The identification of prompt pay laws as the correct answer highlights the legal framework specifically designed to ensure that healthcare providers are paid promptly for the services they deliver. Prompt pay laws establish the requirements for health insurers to process and pay clean claims within a specified timeframe, thereby facilitating cash flow for medical practices and ensuring timely access to care for patients.

These laws also outline penalties for insurers that fail to meet these payment deadlines, thereby holding them accountable and encouraging compliance. Unlike anti-kickback laws, which focus on preventing fraud and abuse in healthcare payments, or consumer protection laws, which safeguard consumers’ overall interests, prompt pay laws are directly concerned with the efficiency and timeliness of financial transactions in the healthcare sector.

Fraud statutes, while critical in maintaining integrity within the healthcare system, address criminal activities such as billing for services not rendered rather than focusing on the timeliness of payment. Therefore, prompt pay laws are uniquely positioned to address the need for timely payment for clean claims, solidifying their importance in the regulatory landscape of healthcare payments.