HB0865 • 2026

Health Insurance - Remittance Advice - Interest on Late-Paid Claims

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Delegate Cullison
Last action: 2026-02-19
Official status: In the House - Hearing 2/19 at 1:30 p.m.
Effective date: 2026-10-01

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Health Insurance - Remittance Advice - Interest on Late-Paid Claims

Requiring insurers, nonprofit health service plans, and health maintenance organizations that owe interest on claims under a certain provision of law to provide certain remittance advice that separately identifies and itemizes the interest owed claims.

What This Bill Does

Requiring insurers, nonprofit health service plans, and health maintenance organizations that owe interest on claims under a certain provision of law to provide certain remittance advice that separately identifies and itemizes the interest owed claims.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-02-19 House
Hearing canceled
2026-02-19 House
Hearing 2/19 at 1:30 p.m.
2026-02-04 House
First Reading Health
2026-02-04 House
Hearing 2/19 at 1:00 p.m.
Maryland General Assembly
Text - First - Health Insurance - Remittance Advice - Interest on Late-Paid Claims

Official Summary Text

Requiring insurers, nonprofit health service plans, and health maintenance organizations that owe interest on claims under a certain provision of law to provide certain remittance advice that separately identifies and itemizes the interest owed claims.

Current Bill Text

Read the full stored bill text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0865*

HOUSE BILL 865
J5 6lr2037

By: Delegate Cullison
Introduced and read first time: February 4, 2026
Assigned to: Health

A BILL ENTITLED

AN ACT concerning 1

Health Insurance – Remittance Advice – Interest on Late–Paid Claims 2

FOR the purpose of requiring insurers, nonprofit health service plan s, and health 3
maintenance organizations that owe interest on claims under a certain provision of 4
law to provide certain remittance advice that separately identifies and itemizes the 5
interest owed claims; and generally relating to late–paid health insurance claims. 6

BY repealing and reenacting, with amendments, 7
Article – Insurance 8
Section 15–1005(g) 9
Annotated Code of Maryland 10
(2017 Replacement Volume and 2025 Supplement) 11

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13

Article – Insurance 14

15–1005. 15

(g) (1) If an insurer, nonprofit health se rvice plan, or health maintenance 16
organization fails to pay a clean claim for reimbursement or otherwise violates any 17
provision of this section, the insurer, nonprofit health service plan, or health maintenance 18
organization shall pay interest on the amount of the claim that remains unpaid 30 days 19
after receipt of the initial clean claim for reimbursement at the monthly rate of: 20

(i) 1.5% from the 31st day through the 60th day; 21

(ii) 2% from the 61st day through the 120th day; and 22

(iii) 2.5% after the 120th day. 23
2 HOUSE BILL 865

(2) The interest paid under this subsection shall be included in any late 1
reimbursement without the necessity for the person that filed the original claim to make 2
an additional claim for that interest. 3

(3) AN INSURER, A NONPROFIT HEALTH SERVICE PLAN, OR A HEALTH 4
MAINTENANCE ORGANIZA TION THAT OWES INTER EST UNDER THIS SUBSECTION 5
SHALL PROVIDE REMITTANCE ADVICE TO THE PERSON THAT FILED THE ORIGI NAL 6
CLAIM THAT SEPARATELY IDENTIFIES AND ITEMIZES THE INTEREST. 7

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
October 1, 2026. 9