FSCO issued a reminder bulletin to insurance companies (originally signed on May 6, 2015) discussing a SABS regulation that went into effect in September 2010. The bulletin reminds insurance companies that in order to comply with SABS, they’re required to pay invoices within 30 days of receipts.
Don’t have time to read the whole thing? No worries, we grabbed the most important part:
The subsection 51(2) of the SABS regulation obligates insurers to “pay interest on the overdue amount for each day the amount is overdue from the date the amount became overdue until it is paid, at the rate of 1 per cent per month, compounded monthly…Failure to pay interest where owing is a breach of the SABS.”
The bulletin continues to review sections of the SABS that deal with payments following approvals to Treatment Plan (OCF-18) and to Pre-approved Goods and Services under MIG (OCF-23).
For more information, see the Late Payments From Insurers to Licensed Service Providers bulletin.
Charge Interest With Universal Office in Two Simple Steps
Not only are insurance companies being held accountable for late payment, but you can also easily charge interest in Universal Office – simplifying your business and your process.
It’s easy to have the Universal Office system calculate and help you insert interest into OCF-21. Just follow these steps:
- Calculate interest charge on overdue amount using the Interest Charge Invoice.
- Locate and select a MVA patient case with one or more overdue invoices.
- Go into the Account Activities tab.
- Click [New Invoice] from the toolbar.
- From Template Type drop-down, select Interest Charge, then click [Open].
- Place a check mark beside every overdue amount that needs an interest charge calculated.
- Note the sum of the Outstanding Amount and the Total interest amount displayed under the table.
- Save and close.
- Fill in the Overdue Amount and Interest fields in OCF-21.