Lawmakers Target Lawyers' 'Prompt Pay' Practice
In recent years, some plaintiffs lawyers have created a lucrative new practice area by representing medical providers suing insurance companies that failed to pay the health care claims on time. Now lawmakers are trying to put an end to the "prompt pay" practice.
March 27, 2015 at 04:22 AM
3 minute read
The original version of this story was published on Texas Lawyer
In the past few years, some plaintiffs lawyers have created a lucrative new practice area by representing doctors or hospitals suing insurance companies that didn't pay health care claims on time.
Now lawmakers are trying to put an end to this “prompt pay” practice.
Members of the House Judiciary & Civil Jurisprudence Committee pondered the question for about three hours during a March 17 hearing on House Bill 1433 by Rep. John Smithee, R-Amarillo, who is chairman of the committee.
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