Bill > HB1930

This bill seeks to address healthcare reimbursement disparities in Arkansas by establishing minimum reimbursement levels for healthcare providers. The legislation mandates that health benefit plans reimburse healthcare providers at rates based on a percentage of Medicare reimbursement, with the goal of bringing Arkansas' reimbursement rates closer to those of adjoining states. The bill cites a 2024 Rand Corporation study showing Arkansas has the lowest reimbursement rates in the nation, currently below 170% of Medicare prices, compared to a national average of 254%. The reimbursement levels will be phased in gradually: 85% by January 1, 2026, 95% by January 1, 2027, and 100% by January 1, 2028. The Insurance Commissioner will calculate these minimum rates using a weighted average of commercial prices in neighboring states. The bill provides comprehensive definitions for healthcare providers, insurers, and services, and establishes an enforcement mechanism that allows the commissioner to penalize insurers who do not comply, including potential suspension of their business license and requiring repayment of underpaid amounts with interest and administrative fees. The ultimate intent is to improve Arkansas' healthcare system by helping providers achieve more sustainable financial conditions and improving their ability to attract and retain healthcare professionals.

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https://arkleg.state.ar.us/Bills/Detail?id=hb1930&ddBienniumSession=2025%2F2025R