November 1, 2026, Simplexam Team, 6 min read
Short answer: If a claims administrator doesn’t pay a medical-legal bill within 60 days of receiving the bill and report, and hasn’t properly contested it, Labor Code §4622 increases the unpaid amount by 10% and adds interest at 7% a year, counted back to the date the bill and report were received.
The clock starts when the employer or claims administrator receives each separate written bill together with the report and the documents the DWC requires. A missing document can delay the start, so a complete submission matters as much as the follow-up.
If the payer contests the bill within 60 days with an explanation of review and pays the portion it considers reasonable, the disputed amount moves into bill review, and whether a penalty applies depends on how that dispute is resolved. You can request a second bill review within 90 days of service of the explanation of review, and independent bill review after that if money is still in dispute.
| Bill (ML201 comprehensive evaluation base fee) | $2,015.00 |
|---|---|
| Bill and report received | March 2, 2026 |
| Paid | June 30, 2026 (120 days) |
| 10% penalty | $201.50 |
| 7% annual interest for 120 days | $46.37 |
| Total owed | $2,262.87 |
On Full Service, a bill 60 days past due is pursued for penalty and interest by our team, and followed up until it is paid. On Self-Managed, the built-in calculator gives you the number for your follow-up letter.
Run the numbers on an open bill in under a minute.
Open the calculatorGeneral information, not legal advice. Confirm current statute text at leginfo.legislature.ca.gov.
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