Prompt Pay Law – ALABAMA

ALABAMA SUMMARY OF EXISTING LAW

Insurer shall pay for services rendered within 45 days upon receipt of a clean written claim or 30 days upon receipt of a clean electronic claim. If claim is denied, insurer must provide a reason for denying or pending the claim and what, if any, additional information is required to process the claim.

Link to Existing Law: Code of Alabama 27-1-17

PRACTICAL NOTE FOR EXISTING LAW

While PBMs are not specifically mentioned, they are likely included in the definition of Insurer as a contractor for such entities.