Judge bars prompt-pay law at insurers’ request

NEWS IN BRIEF — Posted Jan. 28, 2013

Print  |   Email  |   Respond  |   Reprints  |   Like Facebook  |   Share Twitter  |   Tweet Linkedin

A Georgia federal judge temporarily has blocked a state law that would impose payment timelines on the processing of claims through self-funded health insurance plans.

America’s Health Insurance Plans, a national trade association representing insurers, sued Georgia Insurance Commissioner Ralph T. Hudgens in August 2012 over the state’s Insurance Delivery Enhancement Act of 2011. The law, scheduled to go into effect in January 2013, requires companies that provide third-party administrative services to pay medical claims in a timely manner. AHIP requested that the judge block the law from taking effect, saying the state has no authority to regulate self-funded health plans.

On Dec. 31, 2012, Judge William Duffey Jr., with the U.S. District Court for the Northern District, Atlanta Division, granted a preliminary injunction against the law while the suit continues. The judge said AHIP’s members will suffer “irreparable injury” if the law takes effect, because they will be “required to incur the costs and burdens, including increased employee time of modifying their claims processing systems, of monitoring compliance, and of preparing quarterly reports to Georgia regulators.” The judge denied a motion by the state to dismiss the suit.

The Litigation Center of the American Medical Association and the State Medical Societies, along with the Medical Assn. of Georgia, has requested the court’s approval to intervene in the case in support of the prompt-pay law. At this article’s deadline, the judge had not ruled on that motion.

Back to top



Read story

Confronting bias against obese patients

Medical educators are starting to raise awareness about how weight-related stigma can impair patient-physician communication and the treatment of obesity. Read story

Read story


American Medical News is ceasing publication after 55 years of serving physicians by keeping them informed of their rapidly changing profession. Read story

Read story

Policing medical practice employees after work

Doctors can try to regulate staff actions outside the office, but they must watch what they try to stamp out and how they do it. Read story

Read story

Diabetes prevention: Set on a course for lifestyle change

The YMCA's evidence-based program is helping prediabetic patients eat right, get active and lose weight. Read story

Read story

Medicaid's muddled preventive care picture

The health system reform law promises no-cost coverage of a lengthy list of screenings and other prevention services, but some beneficiaries still might miss out. Read story

Read story

How to get tax breaks for your medical practice

Federal, state and local governments offer doctors incentives because practices are recognized as economic engines. But physicians must know how and where to find them. Read story

Read story

Advance pay ACOs: A down payment on Medicare's future

Accountable care organizations that pay doctors up-front bring practice improvements, but it's unclear yet if program actuaries will see a return on investment. Read story

Read story

Physician liability: Your team, your legal risk

When health care team members drop the ball, it's often doctors who end up in court. How can physicians improve such care and avoid risks? Read story

  • Stay informed
  • Twitter
  • Facebook
  • RSS
  • LinkedIn