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AR SB221

AR SB221
To Prohibit Risk-based Provider Organizations From Using Certain Types Of Contracting Practices When Contracting With Providers; To Amend The Medicaid Provider-led Organized Care Act; And To Declare An Emergency.


summary

Introduced
02/12/2025
In Committee
02/12/2025
Crossed Over
Passed
Dead
05/05/2025

Introduced Session

95th General Assembly (2025 Regular)

Bill Summary

AN ACT TO PROHIBIT RISK-BASED PROVIDER ORGANIZATIONS FROM USING CERTAIN TYPES OF CONTRACTING PRACTICES WHEN CONTRACTING WITH PROVIDERS; TO AMEND THE MEDICAID PROVIDER-LED ORGANIZED CARE ACT; TO DECLARE AN EMERGENCY; AND FOR OTHER PURPOSES.

AI Summary

This bill addresses unfair contracting practices by risk-based provider organizations (RBPOs), which are healthcare entities that manage shared savings in medical services. The legislation prohibits RBPOs from engaging in "tying" or "all or nothing" tactics, where providers are forced to accept contract terms for all services or risk being removed from the network. Specifically, the bill prevents RBPOs from: (1) requiring providers to contract for multiple services against their will, (2) penalizing or terminating a provider's network status if they decline to provide certain services under unfavorable terms, and (3) discriminating against providers who exercise their rights under this law. The bill classifies violations as unfair trade practices under several existing state laws, and any contract provisions that conflict with these new rules will be considered void. An emergency clause is included, highlighting the immediate need to protect vulnerable populations, particularly Medicaid beneficiaries with ongoing healthcare needs, from restrictive contracting practices that could limit their access to essential medical services.

Committee Categories

Health and Social Services

Sponsors (14)

Last Action

Died in Senate Committee at Sine Die adjournment. (on 05/05/2025)

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