# Kentucky prompt-pay law for dental claims

> What is the Kentucky prompt-pay deadline for dental claims, and what interest applies to late payment? Verified against the statute text (KRS 304.17A-702; 304.17A-730; 304.17C-090).

URL: https://dentovio.com/dental-prompt-pay-laws/kentucky

Last verified: 2026-08-29

Dentovio is an independent publisher, not a law firm, insurance department, or government agency. These pages summarize state prompt-pay statutes as verified against the legislature's published text on the last-verified date, focusing on how each statute treats dental claims. Statutes change and their application turns on plan type, contract status, and claim facts. Educational reference only — not legal advice; confirm current law with the state insurance department or a licensed attorney before acting on a specific claim.

## Direct answer

Under KRS 304.17A-702; 304.17A-730; 304.17C-090, the Kentucky payment deadline is 30 days for clean/complete claims. KRS 304.17A-730 sets one retroactive rate by how late the claim is ultimately paid: 12% per year if paid 1–30 days late, 18% if 31–60 days late, and 21% beyond 60 days — the top tier triggers at day 61, not day 90 as often misquoted. Dental applicability: Expressly covered by a dedicated bridge statute. Self-funded (ERISA) plans are outside this statute — federal ERISA deadlines apply to them instead.

## Payment deadlines

- Electronic claims: 30 calendar days (all clean claims)
- Paper claims: 30 calendar days (all clean claims)

Insurers must pay, deny, or contest a clean claim within 30 calendar days of receipt (60 days for organ-transplant claims). The payment deadline is format-neutral; only acknowledgment differs — 48 hours for electronic claims, 20 days for paper. For dental-only plans, KRS 304.17C-090 applies the whole prompt-pay run of statutes with one acceleration: 3 business days to respond to electronically submitted claims.

## Interest and penalties on late payment

KRS 304.17A-730 sets one retroactive rate by how late the claim is ultimately paid: 12% per year if paid 1–30 days late, 18% if 31–60 days late, and 21% beyond 60 days — the top tier triggers at day 61, not day 90 as often misquoted. The insurer must add the interest without the provider asking. Separate department fines can reach $1,000 per day or 10% of the unpaid claim, whichever is greater (KRS 304.99-123).

## Does it apply to dental? Dental expressly covered

Expressly covered by a dedicated bridge statute. Kentucky's general definitions exclude dental-only policies from "health benefit plan" — a trap for anyone reading only KRS 304.17A-005 — but KRS 304.17C-090 independently applies the prompt-pay statutes to limited health service benefit plans providing dental-only benefits, with three modifications (3-business-day electronic response, annual reporting, and the $5 interest floor). The clean-claim definition even specifies the ADA-approved form for dentists.

## Self-funded (ERISA) plans

Self-funded employer (ERISA) dental plans are outside every state prompt-pay statute — federal law preempts state insurance regulation of self-funded plans. Those claims run on the federal ERISA claims-procedure deadlines 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.

## Also in the statute

- Interest is excused when the failure is due to events beyond the insurer's control (acts of God, epidemics, strikes, war, facility disruptions).
- Fines extend to Medicaid managed care organizations (KRS 304.99-123(3)).

## Sources (statute text)

- [KRS 304.17A-702 — 30-day clean-claim deadline](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29329)
- [KRS 304.17A-730 — tiered interest (12/18/21%)](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29344)
- [KRS 304.17C-090 — dental-only plans bridge](https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29412)

## Related

- [All state prompt-pay pages](https://dentovio.com/dental-prompt-pay-laws/index.html.md)
- [Dental claim denial codes](https://dentovio.com/dental-claim-denial-codes/index.html.md)
- [Payer documentation requirements](https://dentovio.com/dental-claim-documentation/index.html.md)