What is the Arizona prompt-pay deadline for dental claims, and what interest applies to late payment?

Under A.R.S. §§20-3101, 20-3102 (interest rate via §44-1201(A)(2)), the Arizona payment deadline is 30 days to adjudicate, then 30 days to pay (contract may set other periods). The insurer must pay interest "at a rate that is equal to the legal rate," calculated beginning on the date payment to the provider was due (§20-3102(A)). Dental applicability: Expressly covered. A self-funded private-employer (ERISA) plan is generally beyond this statute's reach and runs on the federal claims-procedure clock instead — but that comes from the courts reading 29 U.S.C. § 1144, not from its text, and it is not categorical: a self-funded governmental or church plan is not an ERISA plan at all, § 1144(b)(6) leaves multiple employer welfare arrangements open to state insurance law, and nothing in § 1144 bars a state from reaching the third-party administrator or the network contract.

Dental expressly covered · Last verified 2026-08-30

Arizona prompt-pay law for dental claims

Arizona's prompt-pay law covers dental claims. The payment deadline and the interest it carries are below.

A.R.S. §§20-3101, 20-3102 (interest rate via §44-1201(A)(2))

Read the statute text

Payment deadlines

Electronic claims: 30 days to adjudicate, then 30 days to pay (contract may set other periods)
Paper claims: 30 days to adjudicate, then 30 days to pay (contract may set other periods)

Arizona runs two clocks, not one. A health care insurer must adjudicate a clean claim within 30 days of receiving it or within the period its contract specifies; then, unless an express written contract sets a payment period, it must pay the approved portion within 30 days after adjudication. The statutory worst case is therefore about 60 days from receipt, and the Department of Insurance and Financial Institutions states the point directly: adjudication and payment are two separate steps. The deadlines cover contracted and noncontracted providers alike and do not split by claim format.

Interest and penalties

The insurer must pay interest "at a rate that is equal to the legal rate," calculated beginning on the date payment to the provider was due (§20-3102(A)). The legal rate is 10 percent a year unless a different rate is contracted for in writing (§44-1201(A)(2)), and DIFI's current guidance — Regulatory Bulletin 2025-01, which supersedes Circular Letter 2000-15 and Regulatory Bulletin 2006-02 — states that the parties may contract for a different reasonable rate but may not agree that no interest is owed. Note that §44-1201(A)(1) now caps interest on consumer medical debt at 3 percent; DIFI's February 2025 bulletin still states 10 percent for insurer late payment.

Does it apply to dental? Dental expressly covered

Expressly covered. Arizona's definition of "health care insurer" names a prepaid dental plan organization and a dental service corporation alongside disability insurers, health care services organizations, and the other service corporations (§20-3101(5)), and §20-3102(A) applies to a clean claim "from a contracted or noncontracted health care provider." The article does not reach licensed providers who are salaried employees of an insurer (§20-3102(K)), and claims inside the out-of-network dispute-resolution article are carved out (§20-3102(N)).

Self-funded (ERISA) plans: A self-funded private-employer (ERISA) dental plan is generally beyond a state prompt-pay statute's reach: 29 U.S.C. § 1144(b)(2)(B) bars a state from deeming such a plan an insurer, and the courts have read that to keep state insurance regulation off it. The statute itself never uses the words self-funded or prompt pay, and the rule is not categorical — a self-funded governmental or church plan is not an ERISA plan at all, so state law can reach it; § 1144(b)(6) leaves multiple employer welfare arrangements open to state insurance law; and nothing in § 1144 addresses state enforcement against the third-party administrator or the network contract. Where the plan is a self-funded ERISA group health plan, the federal claims-procedure deadlines apply instead: a post-service benefit determination within 30 days (one 15-day extension), at least 180 days to appeal, and an appeal decision within 60 days (or two 30-day levels), under 29 CFR 2560.503-1.

Estimate the late-payment interest

Uses the verified Arizona rule (A.R.S. §§20-3101, 20-3102 (interest rate via §44-1201(A)(2))). Estimate only — the statute's own accrual triggers control.

Claim amount (allowed)Interest statutes run on the payable claim amount, not billed charges.Days past the deadlineDays after the statutory deadline for this claim (30 days to adjudicate, then 30 days to pay (contract may set other periods)), not days since submission.

Estimated interest

$10.48

10% per year (simple)

The legal rate under A.R.S. §44-1201(A)(2). Interest runs from the date payment was due — which follows adjudication, not receipt — so count days late from the payment-due date. Per DIFI Regulatory Bulletin 2025-01 (Feb. 3, 2025) a contract may set a different reasonable rate but may not excuse interest entirely.

How we calculate this

Formula: claim × 10% × days late ÷ 365, using simple (not compounded) interest as the statute states it. The rate and deadline come from A.R.S. §§20-3101, 20-3102 (interest rate via §44-1201(A)(2)), read against the statute text linked in the sources on this page (last verified 2026-08-30). Accrual start dates, clean-claim status, safe harbors, and plan funding all affect the real figure — treat this as an estimate for the payer conversation, not a demandable amount.

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Also in the statute

Claim payment adjustments and recoupments are limited to one year, and no interest is owed on an adjustment paid within 30 days (§20-3102(J)).
Grievances go to the insurer's internal system first (§20-3102(F)); if that fails the provider may file DIFI's online Consumer Complaint form and select "Healthcare Provider." There is no requirement to exhaust anything before suing.
DIFI states the timely-pay law does not give it authority or resources to adjudicate individual claims, and it has no jurisdiction over AHCCCS, Medicare, workers' compensation, FEHB, self-funded employer plans, tribal plans, or non-Arizona plans.
The 2024 amendments (Laws 2024, ch. 72 / HB 2444) were targeted: they widened the grievance definition, added the Department's own annual public report, and clarified provider payment rights.

Payment deadlines

Interest and penalties

Does it apply to dental? Dental expressly covered

Estimate the late-payment interest

Also in the statute

Sources (statute text)