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Congress·In Committee·H.R. 5454

Rep. Arrington Introduces Bill to Force Medicare Advantage Plans to Pay Doctors Faster

Medicare Advantage Prompt Pay Act

Legislative Progress

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Key Points

  • Medicare Advantage plans would be required to pay at least 95% of clean claims within strict deadlines: 14 days for electronic claims from in-network providers and 30 days for all other claims, including paper submissions and out-of-network providers.

    From policy text

    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
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  • When a Medicare Advantage plan misses the payment deadline on a clean claim, it must pay interest to the provider at the same rate the federal government uses for its own late payments, running from the day after the deadline through the date payment is actually made.

    From policy text

    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
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  • The government could fine Medicare Advantage organizations up to $25,000 each time they are found to be out of compliance with the prompt payment rules, giving regulators real enforcement power.

    From policy text

    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.
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  • Medicare Advantage plans would have to publicly report detailed data on their payment performance, including how many claims were paid on time, how many were late, and how much interest they paid out over the previous 12 months.

    From policy text

    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
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  • If enacted, these new prompt payment rules would take effect for services provided on or after January 1, 2027, giving insurers and providers over a year to prepare for the new standards.

    From policy text

    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.
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Healthcare

Impact Analysis

Personal Impact

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions
Sep 18, 2025House

Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Sep 18, 2025

Introduced in House

Related Bills

1 bill

Source Information

Document Type

Congressional Bill

Official Title

Medicare Advantage Prompt Pay Act

Bill NumberHR 5454
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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Sponsor

Cosponsors

(7)
D: 3R: 4

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