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Penalty and Interest

Last update
December 11, 2025

The Texas Department of Insurance, Division of Workers’ Compensation (DWC) requires insurance carriers to pay interest on overdue workers' compensation medical bills.

This article outlines current and historical interest rates, as well as when interest applies.

Payment Deadline

Insurance carriers must pay medical bills within 60 days of receiving a complete medical bill for a compensable injury.

If carriers make payment on or after the 60th day, they must include interest with the payment.

When Interest Applies

Insurance carriers must pay interest on medical bills they pay on or after the 60th day after receiving the complete medical bill, in accordance with 28 TAC § 134.130.

Current & Historical Interest Rates

The DWC calculates the interest rate quarterly in accordance with Texas Labor Code § 401.023.

The DWC publishes interest rate updates on the 15th day before the first day of each calendar quarter.

The table below details current and historical interest rates for 2025.

From

To

Rate

10/1/25

12/31/25

7.12%

07/01/25

09/30/25

7.60%

04/01/25

06/30/25

7.61%

01/01/25

03/31/25

7.74%

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