Medical Billing Time Limits By State: A Complete List For 2024
When it comes to running a medical practice, submitting insurance claims on time is crucial to getting paid for your services. You can also offload this to an external medical billing company.
Every state has its own rules about how long you have to file a claim after a patient’s visit. Missing those deadlines can lead to denied claims and lost revenue.
That’s why I’ve put together this easy-to-follow guide to the medical billing time limits for each U.S. state. Whether you’re handling Medicaid or private insurance claims, knowing these timeframes will help keep your practice running smoothly and your cash flow healthy. Let’s dive in!
What Are Medical Billing Time Limits?
Medical billing time limits refer to the specific timeframe within which healthcare providers must submit their claims to insurance companies or government programs like Medicaid or Medicare for payment. These time limits vary by state, insurance type, and sometimes even by specific contracts between providers and payers.
If a claim is submitted after the time limit has passed, it may be denied, which means the healthcare provider will not receive payment for the services they provided. Staying within these time limits is essential to ensure a smooth billing process and avoid losing revenue.
Understanding the purpose of medical billing and coding is essential when considering state-specific time limits.
Complete List Of Medical Billing Time Limits By State
Bookmark this page if you need to refer back to this list of medical billing time limits:
- Alabama:
- Private Insurance: 180 days to 1 year.
- Medicaid: 1 year from the date of service.
- Alaska:
- Private Insurance: 120 days to 1 year.
- Medicaid: 12 months from the date of service.
- Arizona:
- Private Insurance: 180 days.
- Medicaid: 6 months to 1 year from the date of service.
- Arkansas:
- Private Insurance: 120 days to 1 year.
- Medicaid: 12 months from the date of service.
- California:
- Private Insurance: 180 days to 1 year.
- Medicaid: 6 months from the date of service.
- Colorado:
- Private Insurance: 120 days to 1 year.
- Medicaid: 12 months from the date of service.
- Connecticut:
- Private Insurance: 120 days to 180 days.
- Medicaid: 1 year from the date of service.
- Delaware:
- Private Insurance: 180 days to 1 year.
- Medicaid: 120 days.
- Florida:
- Private Insurance: 120 days to 180 days.
- Medicaid: 12 months from the date of service.
- Georgia:
- Private Insurance: 90 days to 180 days.
- Medicaid: 6 months from the date of service.
- Hawaii:
- Private Insurance: 120 days to 1 year.
- Medicaid: 12 months from the date of service.
- Idaho:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- Illinois:
- Private Insurance: 180 days to 1 year.
- Medicaid: 180 days from the date of service.
- Indiana:
- Private Insurance: 120 days to 1 year.
- Medicaid: 12 months from the date of service.
- Iowa:
- Private Insurance: 120 days to 1 year.
- Medicaid: 12 months from the date of service.
- Kansas:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- Kentucky:
- Private Insurance: 120 days to 1 year.
- Medicaid: 12 months from the date of service.
- Louisiana:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- Maine:
- Private Insurance: 180 days to 1 year.
- Medicaid: 1 year from the date of service.
- Maryland:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- Massachusetts:
- Private Insurance: 120 days to 1 year.
- Medicaid: 12 months from the date of service.
- Michigan:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- Minnesota:
- Private Insurance: 180 days to 1 year.
- Medicaid: 1 year from the date of service.
- Mississippi:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- Missouri:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- Montana:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- Nebraska:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- Nevada:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- New Hampshire:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- New Jersey:
- Private Insurance: 120 days to 1 year.
- Medicaid: 1 year from the date of service.
- New Mexico:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- New York:
- Private Insurance: 120 days.
- Medicaid: 90 days from the date of service.
- North Carolina:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- North Dakota:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- Ohio:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- Oklahoma:
- Private Insurance: 120 days to 1 year.
- Medicaid: 12 months from the date of service.
- Oregon:
- Private Insurance: 180 days to 1 year.
- Medicaid: 1 year from the date of service.
- Pennsylvania:
- Private Insurance: 180 days.
- Medicaid: 180 days from the date of service.
- Rhode Island:
- Private Insurance: 120 days to 1 year.
- Medicaid: 12 months from the date of service.
- South Carolina:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- South Dakota:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- Tennessee:
- Private Insurance: 120 days to 1 year.
- Medicaid: 12 months from the date of service.
- Texas:
- Private Insurance: 95 days.
- Medicaid: 95 days from the date of service.
- Utah:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- Vermont:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- Virginia:
- Private Insurance: 120 days to 1 year.
- Medicaid: 12 months from the date of service.
- Washington:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- West Virginia:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- Wisconsin:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
- Wyoming:
- Private Insurance: 180 days to 1 year.
- Medicaid: 12 months from the date of service.
Important Notes:
- While most Medicaid programs allow 1 year to submit claims, always check state-specific guidelines as some Medicaid programs have shorter timeframes.
- Private insurance companies often follow a range of 90 days to 1 year depending on the payer and contract.
- These timelines can also vary based on contractual agreements with the insurance payer or specific policies.
It’s always a good idea to verify directly with the insurance carrier or state Medicaid program for any updates or changes to claim submission deadlines.
Medical Billing Time Limits: Challenges & Considerations
Time Limits Vary by State, Insurance Type, and Provider Agreements
Medical billing and coding time limits depend heavily on where you practice and the type of insurance being billed. Private insurers, Medicaid, and Medicare each have different deadlines for submitting claims, and these can also vary by state. Additionally, some provider agreements may include specific provisions, making it essential to be aware of the rules for each payer you work with.
Extensions May Be Available in Certain Circumstances
In some cases, insurance companies may allow extensions to the billing deadline. This can happen if additional documentation is needed or if there are delays beyond the provider’s control. It's important to know the policies of each insurer and file for an extension as soon as possible when necessary.
Time Limits Typically Start From the Date of Service
The clock starts ticking on medical billing time limits as soon as the service is provided. This means providers must stay organized and ensure claims are submitted promptly to avoid missing deadlines. Understanding when the time limit starts is crucial to preventing delays and ensuring claims are filed on time.
Separate Timeframes for Claim Rejections and Resubmissions
If a claim is rejected, providers may have a different, shorter timeframe to resubmit it. These timeframes can vary depending on the insurance provider and the reason for the rejection. Keeping track of these deadlines is important to avoid losing the opportunity to recover payment.
Keep Track of Different Payers’ Requirements
Each insurance company may have its own set of requirements and timelines for medical billing. Keeping a detailed record of these requirements helps avoid confusion and ensures that claims are filed correctly the first time. This organization reduces the risk of rejected claims and helps the billing process run more smoothly.
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Consequences Of Missing Billing Time Limits
Claims Will Be Denied, Resulting in No Payment for Services Rendered
Missing the billing deadline means the insurance company can deny the claim, resulting in no payment for the service provided. Denied claims not only hurt a practice’s bottom line but also waste valuable resources spent on appeals. To ensure consistent cash flow, meeting time limits is crucial.
Lost Revenue Cannot Be Recovered
Once a claim is denied due to a missed time limit, that revenue is typically lost forever. In most cases, insurance companies will not make exceptions once the window for submitting claims has passed. This makes it even more important for healthcare providers to be diligent in managing their billing processes.
Time-Consuming Appeals or Reworking Claims May Still Lead to Denials
Even if a claim is resubmitted or appealed after a rejection, there's no guarantee that the insurer will approve it. The appeals process can take up significant time and resources, adding extra burden to an already busy practice. This makes it essential to get claims right the first time and within the time limit.
Financial Instability and Inefficiency Can Result from Consistent Missed Deadlines
Missing billing time limits repeatedly can have long-term negative effects on a medical practice’s finances. It can lead to inconsistent cash flow, making it harder to manage expenses and payroll. Over time, this inefficiency can erode a practice's profitability and financial stability.
Administrative Workload Increases with the Need for Follow-Ups and Corrections
Missed billing deadlines often result in additional administrative work, such as following up with insurance companies or resubmitting claims. This extra workload can strain office staff and reduce time spent on other critical tasks. Staying on top of time limits prevents this unnecessary burden.
5 Best Practices For Managing Medical Billing Time Limits
1. Use Reliable Billing Software That Tracks Deadlines
Investing in best medical billing software that tracks deadlines can help ensure claims are submitted on time. These systems provide alerts when claims are nearing their deadlines and can automatically track the progress of each submission. By automating these processes, providers can significantly reduce the risk of missed deadlines.
There are different types of medical billing software, which can help you narrow down what you need based on your individual practice.
More tools
Here are some other tools, systems, and services that might interest you.
2. Maintain Accurate and Timely Documentation
Proper documentation is essential for submitting claims accurately and efficiently. Ensuring that all information is recorded at the time of service can speed up the billing process. Timely documentation also reduces the likelihood of claim rejections due to missing or incorrect information.
A medical coding and billing course can help you glean a better understanding of documentation best practices and expectations.
3. Regularly Review and Update Staff on Billing Requirements
Insurance companies frequently update their billing policies and requirements, so it’s important for medical practices to stay informed. Regular training and updates for staff ensure that everyone is aware of the latest changes. This helps prevent billing errors and keeps the practice compliant with current regulations.
4. Establish a System for Following Up on Denied Claims
Even with careful management, some claims may still get denied. Setting up a follow-up system allows staff to quickly identify rejected claims and take action to resubmit them. This ensures that denials are addressed within the required timeframe and helps recover revenue that might otherwise be lost.
5. Train Billing Staff to Be Aware of State-Specific Deadlines
Each state has different rules for billing time limits, especially for Medicaid claims. Providing training for billing staff on these state-specific deadlines is key to preventing late submissions. Staying informed about state regulations ensures claims are filed on time, reducing the risk of denials.
Medical Billing And Time Limits FAQ
What is medical billing?
Medical billing is the process of submitting and following up on claims with health insurance companies to receive payment for services provided by a healthcare provider. It involves tracking payments such as copays, coinsurance, and deductibles, and ensuring insurance coverage is applied correctly and an understanding of medical billing codes. The goal is to receive reimbursement for the healthcare services rendered to patients.
Why is it important to meet medical billing time limits?
Meeting medical billing time limits is crucial to avoid claim denials and ensure timely reimbursement for services. If claims aren’t submitted within the required timeframe, whether for a health plan or insurance policies, the insurance company may refuse to pay. This can lead to financial difficulties for both the healthcare provider and the patient, as medical debt can accumulate without proper payment processing.
What happens if a claim is denied due to missed time limits?
If a claim is denied due to missed time limits, it can result in balance billing, where the patient becomes responsible for the full cost of the medical services. To avoid this, providers must stay on top of their billing systems to ensure claims are submitted on time. In some cases, dispute resolution or appeals processes may be available, but it’s always best to avoid the issue by submitting claims within the allowed time.
How do billing protections like the No Surprises Act affect medical billing?
The No Surprises Act provides billing protections for patients against unexpected charges, particularly from out-of-network providers. For medical billing, this means healthcare providers must follow specific rules to ensure patients aren’t balance billed for certain services, like emergency care or air ambulance services, beyond their in-network coinsurance or deductible amounts. The act also requires transparency around costs and the use of good faith estimates.
What is a good faith estimate in medical billing?
A good faith estimate is a detailed breakdown of expected costs for medical services provided to patients, especially for those without insurance or receiving non-emergency services. This estimate helps patients understand their financial responsibilities upfront, including how much will be covered by their insurance plan and what copays, deductibles, or coinsurance may apply.
What is the difference between in-network and out-of-network providers in medical billing?
In medical billing, an in-network provider has an agreement with the health plan to offer services at pre-negotiated rates, meaning lower costs for patients. An out-of-network provider does not have such an agreement, leading to higher out-of-pocket costs for the patient. Insurance coverage is typically more limited for out-of-network services, and time limits for billing may vary depending on the provider type.
How can medical billing disputes be resolved?
Medical billing disputes, such as claim denials or incorrect billing amounts, can often be resolved through a dispute resolution process. This may involve reviewing the billing codes, claim submissions, and insurance policies to ensure everything was processed correctly. Providers may also appeal denied claims within the time limits specified by the insurance company or seek clarification on balance billing issues.
What role does cost-sharing play in medical billing?
Cost-sharing refers to the portion of medical costs that the patient is responsible for, including copays, coinsurance, and deductibles. In medical billing, it’s important to ensure these amounts are accurately calculated based on the patient’s health insurance plan and included in the billing statement. Proper handling of cost-sharing helps avoid issues like underpayment or medical debt for the patient.
How can patients protect themselves from medical billing issues?
Patients can protect themselves from medical billing issues by understanding their insurance coverage, knowing whether their provider is in-network or out-of-network, and asking for a good faith estimate for non-emergency services. They should also review their bills carefully for any errors or surprise medical bills that might be covered under billing protections like the No Surprises Act.
Conclusion
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