Texas Prompt Pay Act: Important Information for Physicians

The cost of health care in America has become notoriously expensive in the recent years. According to a news report by The Washington Post, a survey conducted by the think tank The Commonwealth Fund found that the U.S. provides the most expensive but least effective health care services compared to 10 other industrialized nations in the west. The United Kingdom, which ranks first in cost, quality and efficiency, is estimated to have spent around $3,405 per person in 2011. In comparison, the United States spent $8,508—more than double in amount.

Because of such expenses, many Americans rely on health insurance programs to mitigate the cost of medical care. Employees, for example, look to health care benefits provided by their employers. Public health programs such as Medicare and Medicaid also provide assistance for individuals that might not be able to afford health care services.

Of course, this particular system isn’t always bullet proof. While patients typically benefit from insurance programs, physicians usually get the shorted end of the stick. According to a report by the American Medical Association, plenty of doctors fail to receive prompt payment from insurance companies that are supposed to cover the cost of services they’ve rendered for patients. In fact, the report points out that these payments can take up to 6 months. A solution the Texas government has devised is the Prompt Pay Act.

The Texas Prompt Pay Act of 2003 gives physicians an avenue to make legal claims for compensation owed to them by health insurance companies. According to the statute, insurance companies who fail to make necessary payments within a specific time period will be subject to penalties. These penalties will differ depending on the amount of time it takes before full compensation is made.

According to the website of the prompt pay lawyers at Williams Kherkher, the Texas Prompt Pay Act ensures that physicians are properly compensated for the important services they provide for millions of patients. Similar policies are also available in different states.

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