How Long Do Insurance Companies Have to Pay Claims?

Payment timelines vary by state regulations and payer type. Most states have “prompt payment” laws requiring insurance companies to pay clean claims within 30-45 days of receipt. Medicare typically pays claims within 14-30 days. Some states impose penalties or interest on payers who consistently delay payments beyond statutory timeframes. However, these timelines apply only to “clean claims,” those submitted correctly with all required information. Claims requiring additional information, clarification, or corrections don’t start the payment clock until the payer receives the requested documentation. Understanding your state’s prompt payment laws and each payer’s specific policies helps you identify and address payment delays appropriately.