Texas HB3863 amends insurance code to set deadlines for health maintenance organizations and insurers to pay claims and penalizes late payments.

HB3863 amends the Texas Insurance Code to establish deadlines for health maintenance organizations and insurers to pay claims. It mandates that health maintenance organizations pay claims within 30 days if the claim is electronic or 45 days if nonelectronic. Insurers must pay claims within 30 days for electronic claims and 45 days for nonelectronic claims. The bill also imposes penalties for late payments, with the penalty being the lesser of 100% of the underpaid amount or $200,000.

Texas HB3863 amends insurance code to set deadlines for health maintenance organizations and insurers to pay claims and penalizes late payments.

HB3863 amends the Texas Insurance Code to establish deadlines for health maintenance organizations and insurers to pay claims. It mandates that health maintenance organizations pay claims within 30 days if the claim is electronic or 45 days if nonelectronic. Insurers must pay claims within 30 days for electronic claims and 45 days for nonelectronic claims. The bill also imposes penalties for late payments, with the penalty being the lesser of 100% of the underpaid amount or $200,000.