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Article: PACIFICARE SUES STATE OVER PROMPT PAY ACT.(Business)
- Article from:
- Rocky Mountain News (Denver, CO)
- Article date:
- July 15, 2004
- Author:
CopyrightCOPYRIGHT 2004 Rocky Mountain News. All rights reserved. Reproduced with the permission of Dialog LLC by Gale Group. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Rachel Brand, Rocky Mountain News
PacifiCare of Colorado has sued the Division of Insurance over a 5-year-old law requiring the prompt payment of insurance bills.
The Prompt Pay Act was created after physicians and hospitals complained that insurers withheld payments for months on end.
The law says insurance companies must pay, deny or settle a bill within 90 days, or pay stiff penalties and interest.
The state says it learned that PacifiCare owes $3 million in unpaid claims, interest and penalties to medical providers after it audited the 300,000-member carrier last August.
PacifiCare says it originally owed around ...