Louisiana Gov. Bobby Jindal has signed state H.B. 564, a long-term care insurance (LTCI) claims bill, into law.
The law created by the bill, which was introduced by state Rep. Robert Johnson, D-Marksville, La., will require LTCI carriers to pay or deny “clean claims” within 30 business days.
The new law defines an LTCI clean claim as a “claim tht has no defect or impropriety.” A clean LTCI claim must have all “required substantiating documentation,” including “satisfactory evidence of expenses incurred or particular circumstances requiring special treatment that prevents timely payment from being made on the claim,” according to the bill text.
If an LTCI claim is not clean, the carrier must write to ask for additional information and make a decision about the claim within 30 business days of getting the additional information.
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If a carrier denies an LTCI claim, it must give “the specific reason or reasons for denial,” according to the bill text.