With the stroke of a pen, Tuesday Governor Rick Perry sent a message to insurance companies: "Pay your bills on time, or else."
The new "Prompt Pay" legislation signed Tuesday will help doctors hold insurers to payment deadlines without increasing the potential for lawsuits.
Under Senate Bill 418, insurers will be required to pay claims within 45 days or pay penalties of up to $200,000. And after 90-days, they could be forced to pay up to 18% interest on the claim.
The bill will take effect, immediately.