Stricken language would be deleted from and underlined language would be added to present law.
*ANS021* 01/29/2025 9:15:37 AM ANS021
State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1298 3
4
By: Representative L. Johnson 5
By: Senator Irvin 6
7
For An Act To Be Entitled 8
AN ACT TO MODIFY PAYMENT OF BENEFITS FOR CERTAIN 9
HEALTHCARE PROVIDERS UNDER A HEALTH BENEFIT PLAN; AND 10
FOR OTHER PURPOSES. 11
12
13
Subtitle 14
TO MODIFY PAYMENT OF BENEFITS FOR 15
CERTAIN HEALTHCARE PROVIDERS UNDER A 16
HEALTH BENEFIT PLAN. 17
18
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 19
20
SECTION 1. Arkansas Code § 23 -85-114 is amended to read as follows: 21
23-85-114. Payment of claims Payment-of-claims provision. 22
(a) There Except as provided under subsection (c) of this section, 23
there shall be a provision as follows: 24
“Payment of Claims: Indemnity for loss of life will be payable 25
in accordance with the beneficiary designation and the provisions respecting 26
such payment which may be prescribed herein and effective at the time of 27
payment. If no such designation or provision is then effective, such 28
indemnity shall be payable to the estate of the insured. Any other accrued 29
indemnities unpaid at the insured's death may, at the option of the insurer, 30
be paid either to such beneficiary or to such estate. All other indemnities 31
will be payable to the insured.” 32
(b) The Except as provided under subsection (c) of this section, 33
either of the following provisions , or either of them, may be included with 34
the foregoing provision subsection (a) of this section at the option of the 35
insurer: 36 HB1298
2 01/29/2025 9:15:37 AM ANS021
(1) “If any indemnity of this policy shall be payable to the 1
estate of the insured, or to an insured or beneficiary who is a minor or 2
otherwise not competent to give a valid release, the insurer may pay such 3
indemnity, up to an amount not exceeding $............. (insert an amount 4
which shall not exceed one thousand dollars ($1,000)), to any relative by 5
blood or connection by marriage of the insured or beneficiary who is deemed 6
by the insurer to be equitably entitled thereto. Any payment made by the 7
insurer in good faith pursuant to this provision shall fully discharge the 8
insurer to the extent of payment.” 9
(2) “Subject to any written direction of the insured in the 10
application or otherwise, all or a portion of any indemnities provided by 11
this policy on account of hospital, nursing, medical, or surgical services 12
may be paid, at the insurer's option and unless the insured requests 13
otherwise in writing not later than the time of filing proofs of such loss, 14
directly to the hospital or person rendering such services, but it is not 15
required that the service be rendered by a particular hospital or person.” 16
(c) An insurer shall pay a claim for any indemnity provided by the 17
accident and health insurance policy on account of hospital, nursing, 18
medical, or surgical services directly to the healthcare provider that 19
provided the service for an out -of-network claim. 20
21
SECTION 2. Arkansas Code § 23 -86-104 is amended to read as follows: 22
23-86-104. Blanket accident and health insurance — Payment of 23
benefits. 24
(a)(1) All Except as provided under subsection (c) of this section, 25
all benefits under any blanket accident and health insurance policy shall be 26
payable to the person insured, to the designated beneficiaries, or to his or 27
her estate. 28
(2) However, if the person insured is a minor or mental 29
incompetent, the benefits may be made payable to the parent, guardian, or 30
other person actually supporting the minor or mental incompetent. If the 31
entire cost of the insurance has been borne by the employer, the benefits may 32
be made payable to the employer. 33
(b)(1) However, except as provided under subsection (c) of this 34
section, the policy may provide that all or any portion of any indemnities 35
provided by the policy on account of hospital, nursing, medical, or surgical 36 HB1298
3 01/29/2025 9:15:37 AM ANS021
services, at the insurer's option, may be paid directly to the hospital or 1
person rendering the services, but the policy may not shall not require that 2
the service be rendered by a particular hospital or person. 3
(2) Payment so made shall discharge made under subdivision 4
(b)(1) of this section discharges the insurer's obligation with respect to 5
the amount of insurance paid. 6
(c) An insurer shall pay a claim for any indemnity provided by the 7
policy on account of hospital, nursing, medical, or surgical services 8
directly to the healthcare provider that provided the service for an out -of-9
network claim. 10
11
SECTION 3. Arkansas Code § 23 -86-112 is amended to read as follows: 12
23-86-112. Group accident and health insurance — Direct payment of 13
hospital or medical services. 14
(a) On Except as provided under subsection (c) of this section, on 15
request by the group policyholder, any group accident and health insurance 16
policy may provide that all or any portion of any indemnities provided by any 17
policy on account of hospital, nursing, medical, or surgical services may be 18
paid, at the insurer's option, directly to the hospital or person rendering 19
such services, but the policy may not shall not require that the service be 20
rendered by a particular hospital or person. 21
(b) Payment so made made under subsection (a) of this section shall 22
discharge the insurer's obligation with respect to the amount of insurance 23
paid. 24
(c) An insurer shall pay a claim for any indemnity provided by the 25
policy on account of hospital, nursing, medical, or surgical services 26
directly to the healthcare provider that provided the service for an out -of-27
network claim. 28
29
30
31
32
33
34
35
36