Insurance agencies are notorious for delaying payment for legitimate claims and by and large they get away with it with a smile and a shrug. However, when there is a delay in paying doctors, other medical practitioners, and pharmacies, this becomes a serious issue because this demotivates them from rendering services to those who are covered by public or private health insurance. As a result, the federal government implemented the Prompt Payment rule that requires federal agencies to pay their vendors on time, or they will be required to pay interest under the Contract Disputes Act.
States are also addressing this problem in various ways, particularly focusing on private health insurance companies. The website of the Texas prompt pay lawyers at Williams Kherkher discusses the Texas Prompt Pay Act in some detail.
In essence, the law is dealing with the issue of the delivery of needed medical care. The fewer medical professionals that provide a service to insured individuals means that there is a shortage in needed medical care. Doctors, medical professionals, and pharmacies all have expenses to pay, just like any business, and when payments are delayed, they incur costs that would otherwise be avoided. Collecting becomes such a major nuisance that they would much rather not get into it in the first place. They decline to accommodate health insurance policyholders in their practice, preferring patients who pay out-of-pocket.
Any medical service provider or pharmacy that experiences unreasonable delay in payments due to them is protected under Texas law. If you are in this position, you don’t have to tolerate these bad faith practices of insurance companies. Get in touch with an experienced prompt pay lawyer in Texas to file a case against the insurance company for withholding your just compensation. You should get what is due to you plus any damages caused by the delay in payment.