05/24/2023

Magnacare-Payment Holding

Magnacare has been holding on to payments for 9 months! In NY, when can I start charging them interest?

I believe that Magnacare cannot be assessed for interest for late payments on claims. While interest must be paid by other insurance companies, self-funded plans like Magnacare are typically exempt. Because Magnacare is dependent on the funding from a patient’s union to pay for outstanding medical claims, they are the entity responsible for ensuring timely payments. This is a common problem with various unions that do not have adequate funds to pay to Magnacare, which acts as an intermediary to pay claims. There is no recourse from a provider perspective except for patient involvement in an attempt to speed up the process of reimbursing outstanding balances.