Check Out New Prompt Pay Interest Rate
You’ll find the new Prompt Payment interest rate for the first half of 2010 posted on the U.S. Treasury Department’s website. The set rate is at its lowest since the second half of 2003.
Effective Jan. 1 through June 30, the late fee assessed by federal agencies (such as Medicare) that fail to reimburse vendor claims on time is 3.25 percent—down from 4.875 percent in the last half of 2009.
The Prompt Payment Final Rule (5 CFR 1315: Prompt Payment) requires federal agencies, such as the Centers for Medicare & Medicaid Services, to pay commercial obligations within certain time periods and to pay interest penalties when payments are late.
The new rate applies to clean electronic and paper claims that have not been paid by the 30th day after the date of receipt.