25-839 Correction for Provider Update 25-729
Date: 08/15/25
Clarification on penalty payments for late-paid claims under AB 3275
On July 23, 2025, Health Net released Provider Update 25-729, “Claims Will Be Paid Faster Thanks to New California Law,” to inform providers about new claims processing timelines and penalties under Assembly Bill (AB) 3275, effective January 1, 2026.
This notice is being issued to clarify the section regarding penalty payments for late-paid claims.
Clarification
Beginning January 1, 2026, if a plan fails to include the required interest payment on a late-paid claim, it must also pay the claimant a penalty fee equal to the greater of fifteen dollars ($15) or 10 percent of the accrued interest.
This penalty applies only when the interest due is not paid automatically, as required by law. The original update did not clearly state that the penalty is tied to the failure to pay interest, not simply to the lateness of the claim itself.
All other information in Provider Update 25-729 remains accurate and unchanged.
Additional Information
The Department of Managed Health Care (DMHC) may issue further guidance on AB 3275 through December 31, 2027. Any updates impacting providers will be communicated accordingly.
For more information on AB 3275, please visit: Assembly Bill No. 3275.
If you have questions regarding the information contained in this update, contact the Health Net Provider Services Center by email, by telephone or through the Health Net provider portal.
Provider Services
Line of business | Phone number | |
|---|---|---|
Ambetter from Health Net IFP Ambetter PPO | ||
Ambetter HMO | ||
Health Net Employer Group HMO, POS, & PPO | ||
Medi-Cal (including CS and ECM providers) | N/A |
This information applies to Physicians, Participating Physician Groups (PPGs), Hospitals, and Ancillary Providers.
For Medi-Cal, this information applies to Amador, Calaveras, Inyo, Los Angeles, Molina, Mono, Sacramento, San Joaquin, Stanislaus, Tulare and Tuolumne counties.