S2879-119

2. Application of improved prompt payment requirements to Medicare Advantage organizations Section 1857 of the Social Security Act (42 U.S.C. 1395w–27) is amended— in subsection (f), by striking paragraph (1) and inserting the following: A contract under this part between the Secretary and a Medicare Advantage organization offering a Medicare Advantage plan shall require the organization to provide prompt payment for not less than 95 percent of clean claims submitted to the organization, with respect to covered items or services furnished to enrollees by a provider of services or supplier, within the applicable number of calendar days after the date of initial receipt of such clean claim, regardless of whether such items or services are furnished under a contract between the organization and the provider of services or supplier. In clause (i), the term applicable number of calendar days means— in the case of a claim submitted electronically, by a provider of services or supplier for items or services furnished under a contract between the organization and the provider of services or supplier, 14 days; and in the case of a claim not described in subclause (I), 30 days. In this paragraph, the term clean claim means a claim that— has a complete data set, with respect to the UB–04 or CMS 1500 form, as applicable (or successor to such applicable form) for all entries identified as mandatory entries by the National Uniform Billing Committee; and in the case of a claim submitted electronically, is completed in accordance with the applicable standards and data elements adopted under section 1173(a). For purposes of this paragraph, there shall be a rebuttable presumption that a claim has been received by an MA organization— in the case of a claim submitted electronically, on the date verified in the health care claim status request and response transaction that is for such claim and meets applicable standards and data elements adopted under section 1173(a) for such electronic requests and responses; and in the case of a claim submitted otherwise, on the fifth business day after the postmark date of the claim or the date specified in the time stamp of the transmission. In clause (i)(II), the term business day means any day other than Saturday, Sunday, or a legal public holiday described in section 6103 of title 5, United States Code. If payment for such covered items or services is not issued, mailed, or otherwise transmitted to the provider of services or supplier for such claims that are clean claims, in accordance with subparagraph (A), by not later than the deadline for such payment under such subparagraph, the MA organization shall pay the provider of services or supplier interest at the rate used for purposes of section 3902(a) of title 31, United States Code (relating to interest penalties for failure to make prompt payments) for the period beginning on the day after such required payment date and ending on the date on which payment is made. in subsection (g)— by redesignating paragraph (4) as paragraph (5); by inserting after paragraph (3) the following new paragraph: If the Secretary determines that an MA organization with a contract under this section is not in compliance with subsection (f)(1), the Secretary shall provide, in addition to any other remedies authorized by law, for civil money penalties of not more than $25,000 for each such determination. In making a determination under the previous sentence, the Secretary may take into account information collected pursuant to section 1851(d)(4)(D)(v). in paragraph (5), as redesignated by clause (i), by striking or (3) and inserting , (3), or (4). The amendments made by this subsection shall apply with respect to items and services furnished on or after January 1, 2027, and contract years beginning on or after such date. Section 1851(d)(4)(D) of the Social Security Act (42 U.S.C. 1395w–21(d)(4)(D)) is amended— in clause (iii), by striking and at the end; in clause (iv), by striking the period and inserting , and; and by adding at the end the following new clause: information regarding compliance of the plan with the prompt payment requirements under section 1857(f)(1), including, with respect to the most recent 12-month period for which data are available— the number and percent of submitted claims for which payment was made by the plan; the number and percent of submitted claims— that were for items or services furnished by a provider of services or supplier under a contract between the organization offering the plan and the provider of services or supplier; and that were for items or services not furnished under such a contract; the number and percent of submitted claims described in each of items (aa) and (bb) of subclause (II) for which payment was made by the plan by the deadline required pursuant to section 1857(f)(1)(A); the number and percent of submitted claims described in each of items (aa) and (bb) of subclause (II) for which interest was paid by the plan pursuant to section 1857(f)(1)(D); and the total amount of interest paid by the plan pursuant to such section. (1)Requirements(A)Items and services furnished by in-network and out-of-network providers of services and suppliers(i)In generalA contract under this part between the Secretary and a Medicare Advantage organization offering a Medicare Advantage plan shall require the organization to provide prompt payment for not less than 95 percent of clean claims submitted to the organization, with respect to covered items or services furnished to enrollees by a provider of services or supplier, within the applicable number of calendar days after the date of initial receipt of such clean claim, regardless of whether such items or services are furnished under a contract between the organization and the provider of services or supplier.(ii)Applicable number of calendar daysIn clause (i), the term applicable number of calendar days means—(I)in the case of a claim submitted electronically, by a provider of services or supplier for items or services furnished under a contract between the organization and the provider of services or supplier, 14 days; and(II)in the case of a claim not described in subclause (I), 30 days.(B)Clean claim definedIn this paragraph, the term clean claim means a claim that— (i) has a complete data set, with respect to the UB–04 or CMS 1500 form, as applicable (or successor to such applicable form) for all entries identified as mandatory entries by the National Uniform Billing Committee; and (ii)in the case of a claim submitted electronically, is completed in accordance with the applicable standards and data elements adopted under section 1173(a).(C)Rebuttable presumption for receipt of claim(i)In generalFor purposes of this paragraph, there shall be a rebuttable presumption that a claim has been received by an MA organization—(I)in the case of a claim submitted electronically, on the date verified in the health care claim status request and response transaction that is for such claim and meets applicable standards and data elements adopted under section 1173(a) for such electronic requests and responses; and(II)in the case of a claim submitted otherwise, on the fifth business day after the postmark date of the claim or the date specified in the time stamp of the transmission.(ii)Business day definedIn clause (i)(II), the term business day means any day other than Saturday, Sunday, or a legal public holiday described in section 6103 of title 5, United States Code.(D)Interest applied for clean claims not promptly paidIf payment for such covered items or services is not issued, mailed, or otherwise transmitted to the provider of services or supplier for such claims that are clean claims, in accordance with subparagraph (A), by not later than the deadline for such payment under such subparagraph, the MA organization shall pay the provider of services or supplier interest at the rate used for purposes of section 3902(a) of title 31, United States Code (relating to interest penalties for failure to make prompt payments) for the period beginning on the day after such required payment date and ending on the date on which payment is made.; and (4)Application of civil money penalties to prompt pay violationsIf the Secretary determines that an MA organization with a contract under this section is not in compliance with subsection (f)(1), the Secretary shall provide, in addition to any other remedies authorized by law, for civil money penalties of not more than $25,000 for each such determination. In making a determination under the previous sentence, the Secretary may take into account information collected pursuant to section 1851(d)(4)(D)(v).; and (v)information regarding compliance of the plan with the prompt payment requirements under section 1857(f)(1), including, with respect to the most recent 12-month period for which data are available—(I)the number and percent of submitted claims for which payment was made by the plan;(II)the number and percent of submitted claims—(aa) that were for items or services furnished by a provider of services or supplier under a contract between the organization offering the plan and the provider of services or supplier; and(bb)that were for items or services not furnished under such a contract; (III)the number and percent of submitted claims described in each of items (aa) and (bb) of subclause (II) for which payment was made by the plan by the deadline required pursuant to section 1857(f)(1)(A);(IV)the number and percent of submitted claims described in each of items (aa) and (bb) of subclause (II) for which interest was paid by the plan pursuant to section 1857(f)(1)(D); and(V)the total amount of interest paid by the plan pursuant to such section..