Bill > SB0546

This bill amends Michigan's insurance code to modify penalties and timelines for late insurance claim payments, primarily focusing on two key sections. For health insurance claims, the bill reduces the timeframe for paying "clean claims" from 45 to 30 days and introduces a graduated interest rate structure for late payments: 1.5% per month for the first 30 days, 2% per month for 31-90 days late, and 4% per month for payments over 90 days late. The bill also requires insurers to specify in writing what constitutes a satisfactory proof of loss within 30 days of receiving a claim. Additionally, starting January 1, 2027, insurers must publicly report on their websites the number of timely and untimely claims, as well as the total interest paid for late payments. For personal protection insurance benefits, similar changes are made to payment timelines and interest calculations, giving insurers more flexibility when bills are not submitted promptly. The bill aims to create more transparency and accountability in insurance claim processing by establishing clearer standards and financial consequences for delays, while providing insurers with some protections and additional time to process claims under certain circumstances.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0546