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Penalty and Interest

Last update
March 14, 2019

An additional penalty of 20% and interest of 10% per annum should be included on overdue balances for workers' compensation medical bills in Maryland.

State

Maryland

Late Payment Due Date

45 days

Late Payment Percentage

Penalty: 20%

Interest: 10% per annum

WORKERS' COMPENSATION COMMISSION
14.09.08 Guide of Medical and Surgical Fees

Maryland Code, Courts and Judicial Proceedings

Maryland Code, Labor and Employment

.6 Reimbursement Procedures. 

Maryland Code, Courts and Judicial Proceedings § 11-107 

Maryland Code, Labor and Employment 

Statute or Regulation Text

WORKERS' COMPENSATION COMMISSION
14.09.08 Guide of Medical and Surgical Fees

.6 Reimbursement Procedures.

D. Untimely Reimbursement. If an employer or insurer does not pay the fee calculated under this chapter or file a notice of denial of reimbursement, within 45 days of receipt of the CMS-1500, the Commission may assess a fine against the employer or its insurer, and award interest to the provider in accordance with Labor and Employment Article, §§9-663 and 9-664, Annotated Code of Maryland, and COMAR 14.09.01.22.

Maryland Code, Labor and Employment

§ 9-664

(a)(1) If the Commission finds that the employer or its insurer has failed, without good cause, to pay for treatment or services required by § 9-660 of this Part IX of this subtitle within 45 days after the Commission, by order, finally approves the fee or charge for the treatment or services, the Commission may impose a fine on the employer or insurer, not exceeding 20% of the amount of the approved fee or charge.

(2) The employer or insurer shall pay the fine to the Commission to be deposited in the General Fund of the State.
(b)(1) Interest, payable to the provider of the treatment or services, shall accrue at the rate specified in § 11-107(a) of the Courts Article on any amount owed to the provider that:
(i) is due and payable;  and
(ii) remains unpaid more than 45 days after notice of the payment due has been mailed.
(2) Interest shall accrue beginning on the 46th day after the later of:
(i) the day the payment becomes due;  or
(ii) the day the notice of the payment due is mailed

Maryland Code, Courts and Judicial Proceedings

11-107(a) (a) Except as provided in § 11-106 of this subtitle, the legal rate of interest on a judgment shall be at the rate of 10 percent per annum on the amount of judgment.
(b) The legal rate of interest on a money judgment for rent of residential premises shall be at the rate of 6 percent per annum on the amount of the judgment.
(c) The legal rate of interest on a money judgment for delinquent real or personal property taxes shall be the greater of:
(1) The sum of the rates fixed under §§ 14-603 and 14-702 of the Tax-Property Article for interest and penalties;  or
(2) At the rate of 10 percent per annum..


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