Prompt Pay Interest Calculator
Every state in this tool sets a deadline for a payer to act on a clean claim and a penalty for missing it. Enter the claim and the dates, and the calculator shows how many days past the statutory deadline the payer went and what the state's rule says they owe. Figures are illustrative; the statute and your contract control.
Interest only gets paid when someone logs the adjudication date on every claim and asks for it. Our free 48-hour review reads your aging report and 90-day claims export, under a BAA, and returns what is unanswered, what is expiring and what the state's rule would owe, by location.
Get the free reviewHow the calculation works
The state deadline runs from the day the payer receives a clean claim, so the calculator adds the state's day count to your received date to find the deadline, counting working days where the statute says working days (Georgia) and skipping weekends but not state holidays. Days past the deadline are counted to the paid date, or to today if the claim is still open. For states with a flat annual or monthly rate, interest is simple interest on the amount owed for the late period; for states with tiered penalties or rules on billed charges, the calculator shows the rule and links to the statute instead of producing a number, because those rules do not reduce to one rate.
Two things the calculator cannot know: whether the claim was clean on the date you entered (a payer's request for records usually means the claim was not yet clean on that date), and whether the plan is self-funded under ERISA, which state prompt pay laws do not reach. Both are covered on each state's page.
State rules in this calculator
| State | Deadline | Late payment rule | Page |
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Rules are checked against each state's code and kept current on the linked pages. If a figure here does not match what a payer or regulator tells you, tell us and we will fix it.
Questions
Does the payer add prompt pay interest automatically?
Some states require it, including Florida and California, and most do not. Even where it is required, practices rarely check whether the interest line actually appeared on the remittance. The calculator gives you the figure to check against.
Does this apply to Medicare or self-funded employer plans?
No. Medicare has its own payment floor and interest rules under federal law, and self-funded ERISA plans are outside state prompt pay statutes. The rules here apply to state-regulated commercial plans, and in some states to Medicaid managed care.
What counts as a clean claim?
A claim the payer can adjudicate without requesting more information. Each state defines it slightly differently and payers lean on that definition, so the received date you enter should be the date the claim was complete, not the first submission. Full definition here.
Can we bill the patient for the interest?
No. Prompt pay interest is owed by the payer to the provider under the statute. It is not a patient balance and should never appear on a statement.