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Paying, Denying Claims in Indiana with Interest

13 Jan, 2026 Frank Ferreri

                               
Compliance Corner

Whether or not a workers' compensation claim is paid or denied is the nuts and bolts of compliance, but what are the rules? Here's what Indiana law provides, as detailed on Simply Research.

Deadlines

A payor shall pay or deny each clean claim as follows:

(1) If the claim is filed electronically, not more than 30 days after the date the claim is received by the payor.

(2) If the claim is filed on paper, not more than 45 days after the date the claim is received by the payor.

When Interest is Due

If:

(1) a payor fails to pay or deny a clean claim in the time required; and

(2) the payor subsequently pays the claim;

the payor shall pay the medical service provider that submitted the claim interest on the amount of the payor's pecuniary liability under IC 22-3-2 through IC 22-3-7 for the claim paid. Interest for 2026 will be 4% annually; ,04 daily (.04365)

When Interest Accrues, Stops Accruing

Interest paid:

(1) accrues beginning:

(A) 31 days after the date the claim is received; or

(B) 46 days after the date the claim is received; and

(2) stops accruing on the date the claim is paid.

Statutory Source of Interest Rates

In paying interest, a payor shall use the same interest rate as provided in IC 12-15-21-3(7)(A).

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    About The Author

    • Frank Ferreri

      Frank Ferreri, M.A., J.D. covers workers' compensation legal issues. He has published books, articles, and other material on multiple areas of employment, insurance, and disability law. Frank received his master's degree from the University of South Florida and juris doctor from the University of Florida Levin College of Law. Frank encourages everyone to consider helping out the Kind Souls Foundation and Kids' Chance of America.

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