Senator Jane Nelson
P.O. Box 12068, State Capitol
Austin, Texas 78711
Tel. (512) 463-0112
News Release
May 30, 2003
Contact: Dave Nelson
Prompt Pay Legislation on Its Way to Governor Perry

AUSTIN -- The conference committee report on SB 418 by Senator Jane Nelson, R-Lewisville, - the so-called "prompt pay" bill - was approved today by the House and the Senate and sent to the governor's desk.

SB 418 makes health insurance companies live up to their contracts and adhere to the most universal rule of doing business: if you perform a service, you ought to be paid for that service - on time and in full. The bill provides some uniformity to the claims process, develops a payment timetable with allowances for insurers to dispute claims that do not adhere to contract guidelines.

"I believe we can do better for Texas patients," Senator Nelson, who chairs the Senate Committee on Health & Human Services, said. "The legislation will help reduce the administrative burden involved in a payment system that is simply not working. By simplifying and standardizing the payment system, I believe that in the long term we can significantly reduce the cost of health care."

Senator Jane Nelson represents District 12, which includes the growing suburban communities of Denton and Tarrant counties and parts of the city of Fort Worth.