FOR IMMEDIATE RELEASE:
December 14, 1999

FOR INFORMATION CONTACT:
Kelley Elwood, 312/580-6497

Law Relieving Medical Billing
Hassles Goes into Effect Today

Chicago – Patients and physicians will be less burdened by problems of duplicate billing and late claim reimbursement with the enactment of a law that takes effect today.

The new law requires insurance companies and health maintenance organizations (HMOs) to pay claims in a timely fashion to all health care professionals and providers. Clean claims for health care services must be paid in 30 days. Certain claims by Independent Practice Associations (IPAs) and Physician Hospital Organizations (PHOs) are not due for 60 days initially, although beginning in 2001, they will be payable in 30 days as well. Additionally, HMOs must make timely capitation payments. The initial cap payment to a physician must occur within 60 days of the patient’s effective enrollment date and monthly thereafter.

"Billing hassles will be reduced for both patients and physicians," said Clair M. Callan, M.D., president of the Illinois State Medical Society. "The quicker turn around time on claims and capitation reimbursements will reduce the time physicians spend on unnecessary paperwork and will help reduce administrative costs. Physicians will be able to focus more of their time and resources on patient care."

Elizabeth Coulson (R-Glenview), Thomas Dart (D-Chicago), Andrea Moore (R-Libertyville) and Robert Madigan (R-Lincoln) were the principal sponsors of the ISMS-backed bill which was signed into law by Governor George Ryan on August 16.

ISMS is a professional membership organization representing 16,000 physicians, practicing in all specialties statewide.

ISMS permits and encourages reproduction of ISMS news releases with the request that ISMS is credited as the source of the information.