Bill > HB1703

This bill establishes a new drug reimbursement process for healthcare providers in Arkansas, creating a mechanism for providers to challenge reimbursement rates that are lower than their drug acquisition costs. The bill defines key terms such as "contracting entity" (healthcare insurers and their contractors), "drug" (medical substances used for treatment), and "healthcare provider" (licensed medical service professionals). Under the new process, healthcare providers can submit administrative appeals to contracting entities if they believe a drug reimbursement rate is below their acquisition cost. The appeal process must include a dedicated contact method and allow appeals within 60 business days of claim adjudication. If an appeal is successful, the contracting entity must adjust the reimbursement rate to at least 110% of the provider's drug acquisition cost and reprocess both the original and subsequent claims at the new rate. Providers can also submit quarterly notices about drugs with low reimbursement rates, which may prompt automatic rate adjustments. The bill aims to ensure fair compensation for healthcare providers and protect them from receiving reimbursements that do not cover their costs for medications and medical supplies.

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https://arkleg.state.ar.us/Bills/Detail?id=hb1703&ddBienniumSession=2025%2F2025R