AR
Arkansas House Bill HB1298

Arkansas 2025 Regular Session

Arkansas House Bill HB1298 Compare Versions

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11 Stricken language would be deleted from and underlined language would be added to present law.
2-Act 307 of the Regular Session
3-*ANS021* 02-11-2025 09:49:38 ANS021
4-
5-State of Arkansas As Engrossed: H2/11/25 1
2+*ANS021* 01/29/2025 9:15:37 AM ANS021
3+State of Arkansas 1
64 95th General Assembly A Bill 2
75 Regular Session, 2025 HOUSE BILL 1298 3
86 4
97 By: Representative L. Johnson 5
108 By: Senator Irvin 6
119 7
1210 For An Act To Be Entitled 8
1311 AN ACT TO MODIFY PAYMENT OF BENEFITS FOR CERTAIN 9
1412 HEALTHCARE PROVIDERS UNDER A HEALTH BENEFIT PLAN; AND 10
1513 FOR OTHER PURPOSES. 11
1614 12
1715 13
1816 Subtitle 14
1917 TO MODIFY PAYMENT OF BENEFITS FOR 15
2018 CERTAIN HEALTHCARE PROVIDERS UNDER A 16
2119 HEALTH BENEFIT PLAN. 17
2220 18
2321 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 19
2422 20
2523 SECTION 1. Arkansas Code § 23 -85-114 is amended to read as follows: 21
2624 23-85-114. Payment of claims Payment-of-claims provision. 22
2725 (a) There Except as provided under subsection (c) of this section, 23
2826 there shall be a provision as follows: 24
2927 “Payment of Claims: Indemnity for loss of life will be payable 25
3028 in accordance with the beneficiary designation and the provisions respecting 26
3129 such payment which may be prescribed herein and effective at the time of 27
3230 payment. If no such designation or provision is then effective, such 28
3331 indemnity shall be payable to the estate of the insured. Any other accrued 29
3432 indemnities unpaid at the insured's death may, at the option of the insurer, 30
3533 be paid either to such beneficiary or to such estate. All other indemnities 31
3634 will be payable to the insured.” 32
3735 (b) The Except as provided under subsection (c) of this section, 33
3836 either of the following provisions , or either of them, may be included with 34
3937 the foregoing provision subsection (a) of this section at the option of the 35
40-healthcare insurer: 36 As Engrossed: H2/11/25 HB1298
38+insurer: 36 HB1298
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4541 (1) “If any indemnity of this policy shall be payable to the 1
4642 estate of the insured, or to an insured or beneficiary who is a minor or 2
4743 otherwise not competent to give a valid release, the insurer may pay such 3
4844 indemnity, up to an amount not exceeding $............. (insert an amount 4
4945 which shall not exceed one thousand dollars ($1,000)), to any relative by 5
5046 blood or connection by marriage of the insured or beneficiary who is deemed 6
5147 by the insurer to be equitably entitled thereto. Any payment made by the 7
5248 insurer in good faith pursuant to this provision shall fully discharge the 8
5349 insurer to the extent of payment.” 9
5450 (2) “Subject to any written direction of the insured in the 10
5551 application or otherwise, all or a portion of any indemnities provided by 11
5652 this policy on account of hospital, nursing, medical, or surgical services 12
5753 may be paid, at the insurer's option and unless the insured requests 13
5854 otherwise in writing not later than the time of filing proofs of such loss, 14
5955 directly to the hospital or person rendering such services, but it is not 15
6056 required that the service be rendered by a particular hospital or person.” 16
61- (c) A healthcare insurer shall pay a claim for any indemnity provided 17
62-by a health benefit plan on account of hospital, nursing, medical, or 18
63-surgical services directly to the healthcare provider that provided the 19
64-service for an out-of-network claim. 20
65- (d) As used in this section: 21
66- (1)(A) "Health benefit plan" means: 22
67- (i) An individual, blanket, or group plan or a 23
68-policy or contract for healthcare services offered, issued, renewed, 24
69-delivered, or extended in this state by a healthcare insurer; and 25
70- (ii) A health benefit program receiving state or 26
71-federal appropriations from the State of Arkansas, including the Arkansas 27
72-Medicaid Program and the Arkansas Health and Opportunity for Me Program 28
73-established by the Arkansas Health and Opportunity for Me Act of 2021, § 23 -29
74-61-1001 et seq., or any successor program. 30
75- (B) “Health benefit plan” includes: 31
76- (i) Indemnity and managed care plans; and 32
77- (ii) Nonfederal governmental plans as defined in 29 33
78-U.S.C. § 1002(32), as it existed on January 1, 2025. 34
79- (C) “Health benefit plan” does not include: 35
80- (i) A plan that provides only dental benefits or eye 36 As Engrossed: H2/11/25 HB1298
57+ (c) An insurer shall pay a claim for any indemnity provided by the 17
58+accident and health insurance policy on account of hospital, nursing, 18
59+medical, or surgical services directly to the healthcare provider that 19
60+provided the service for an out -of-network claim. 20
61+ 21
62+ SECTION 2. Arkansas Code § 23 -86-104 is amended to read as follows: 22
63+ 23-86-104. Blanket accident and health insurance — Payment of 23
64+benefits. 24
65+ (a)(1) All Except as provided under subsection (c) of this section, 25
66+all benefits under any blanket accident and health insurance policy shall be 26
67+payable to the person insured, to the designated beneficiaries, or to his or 27
68+her estate. 28
69+ (2) However, if the person insured is a minor or mental 29
70+incompetent, the benefits may be made payable to the parent, guardian, or 30
71+other person actually supporting the minor or mental incompetent. If the 31
72+entire cost of the insurance has been borne by the employer, the benefits may 32
73+be made payable to the employer. 33
74+ (b)(1) However, except as provided under subsection (c) of this 34
75+section, the policy may provide that all or any portion of any indemnities 35
76+provided by the policy on account of hospital, nursing, medical, or surgical 36 HB1298
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83-
84-
85-and vision care benefits; 1
86- (ii) A disability income plan; 2
87- (iii) A credit insurance plan; 3
88- (iv) Insurance coverage issued as a supplement to 4
89-liability insurance; 5
90- (v) A medical payment under an automobile or 6
91-homeowners insurance plan; 7
92- (vi) A health benefit plan provided under Arkansas 8
93-Constitution, Article 5, § 32, the Workers' Compensation Law, § 11 -9-101 et 9
94-seq., or the Public Employee Workers' Compensation Act, § 21 -5-601 et seq.; 10
95- (vii) A plan that provides only indemnity for 11
96-hospital confinement; 12
97- (viii) An accident-only plan; 13
98- (ix) A specified disease plan; or 14
99- (x) A long-term-care-only plan; and 15
100- (2)(A) "Healthcare insurer" means an entity subject to the 16
101-insurance laws of this state or the jurisdiction of the Insurance 17
102-Commissioner that contracts or offers to contract to provide health insurance 18
103-coverage, including without limitation an insurance company, a hospital and 19
104-medical service corporation, a health maintenance organization, a self -20
105-insured governmental or church plan in this state, or the Arkansas Medicaid 21
106-Program. 22
107- (B) "Healthcare insurer" does not include an entity that 23
108-provides only dental benefits or eye and vision care benefits. 24
109- 25
110- 26
111- SECTION 2. Arkansas Code § 23 -86-104 is amended to read as follows: 27
112- 23-86-104. Blanket accident and health insurance — Payment of 28
113-benefits. 29
114- (a)(1) All Except as provided under subsection (c) of this section, 30
115-all benefits under any blanket accident and health insurance policy or health 31
116-benefit plan shall be payable to the person insured, to the designated 32
117-beneficiaries, or to his or her estate. 33
118- (2) However, if the person insured is a minor or mental 34
119-incompetent, the benefits may be made payable to the parent, guardian, or 35
120-other person actually supporting the minor or mental incompetent. If the 36 As Engrossed: H2/11/25 HB1298
121-
122- 4 02-11-2025 09:49:38 ANS021
123-
124-
125-entire cost of the insurance has been borne by the employer, the benefits may 1
126-be made payable to the employer. 2
127- (b)(1) However, except as provided under subsection (c) of this 3
128-section, the policy or health benefit plan may provide that all or any 4
129-portion of any indemnities provided by the policy or health benefit plan on 5
130-account of hospital, nursing, medical, or surgical services, at the 6
131-healthcare insurer's option, may be paid directly to the hospital or person 7
132-rendering the services, but the policy or health benefit plan may not shall 8
133-not require that the service be rendered by a particular hospital or person. 9
134- (2) Payment so made shall discharge made under subdivision 10
135-(b)(1) of this section discharges the healthcare insurer's obligation with 11
136-respect to the amount of insurance paid. 12
137- (c) A healthcare insurer shall pay a claim for any indemnity provided 13
138-by a health benefit plan on account of hospital, nursing, medical, or 14
139-surgical services directly to the healthcare provider that provided the 15
140-service for an out-of-network claim. 16
141- (d) As used in this section: 17
142- (1)(A) "Health benefit plan" means: 18
143- (i) An individual, blanket, or group plan or a 19
144-policy or contract for healthcare services offered, issued, renewed, 20
145-delivered, or extended in this state by a healthcare insurer; and 21
146- (ii) A health benefit program receiving state or 22
147-federal appropriations from the State of Arkansas, including the Arkansas 23
148-Medicaid Program and the Arkansas Health and Opportunity for Me Program 24
149-established by the Arkansas Health and Opportunity for Me Act of 2021, § 23 -25
150-61-1001 et seq., or any successor program. 26
151- (B) “Health benefit plan” includes: 27
152- (i) Indemnity and managed care plans; and 28
153- (ii) Nonfederal governmental plans as defined in 29 29
154-U.S.C. § 1002(32), as it existed on January 1, 2025. 30
155- (C) “Health benefit plan” does not include: 31
156- (i) A plan that provides only dental benefits or eye 32
157-and vision care benefits; 33
158- (ii) A disability income plan; 34
159- (iii) A credit insurance plan; 35
160- (iv) Insurance coverage issued as a supplement to 36 As Engrossed: H2/11/25 HB1298
161-
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163-
164-
165-liability insurance; 1
166- (v) A medical payment under an automobile or 2
167-homeowners insurance plan; 3
168- (vi) A health benefit plan provided under Arkansas 4
169-Constitution, Article 5, § 32, the Workers' Compensation Law, § 11 -9-101 et 5
170-seq., or the Public Employee Workers' Compensation Act, § 21 -5-601 et seq.; 6
171- (vii) A plan that provides only indemnity for 7
172-hospital confinement; 8
173- (viii) An accident-only plan; 9
174- (ix) A specified disease plan; or 10
175- (x) A long-term-care-only plan; and 11
176- (2)(A) "Healthcare insurer" means an entity subject to the 12
177-insurance laws of this state or the jurisdiction of the Insurance 13
178-Commissioner that contracts or offers to contract to provide health insurance 14
179-coverage, including without limitation an insurance company, a hospital and 15
180-medical service corporation, a health maintenance organization, a self -16
181-insured governmental or church plan in this state, or the Arkansas Medicaid 17
182-Program. 18
183- (B) "Healthcare insurer" does not include an entity that 19
184-provides only dental benefits or eye and vision care benefits. 20
185- 21
186- SECTION 3. Arkansas Code § 23 -86-112 is amended to read as follows: 22
187- 23-86-112. Group accident and health insurance — Direct payment of 23
188-hospital or medical services. 24
189- (a) On Except as provided under subsection (c) of this section, on 25
190-request by the group policyholder, any group accident and health insurance 26
191-policy or health benefit plan may provide that all or any portion of any 27
192-indemnities provided by any policy or health benefit plan on account of 28
193-hospital, nursing, medical, or surgical services may be paid, at the 29
194-healthcare insurer's option, directly to the hospital or person rendering 30
195-such services, but the policy or health benefit plan may not shall not 31
196-require that the service be rendered by a particular hospital or person. 32
197- (b) Payment so made made under subsection (a) of this section shall 33
198-discharge the healthcare insurer's obligation with respect to the amount of 34
199-insurance paid. 35
200- (c) A healthcare insurer shall pay a claim for any indemnity provided 36 As Engrossed: H2/11/25 HB1298
201-
202- 6 02-11-2025 09:49:38 ANS021
203-
204-
205-by a health benefit plan on account of hospital, nursing, medical, or 1
206-surgical services directly to the healthcare provider that provided the 2
207-service for an out-of-network claim. 3
208- (d) As used in this section: 4
209- (1)(A) "Health benefit plan" means: 5
210- (i) An individual, blanket, or group plan or a 6
211-policy or contract for healthcare services offered, issued, renewed, 7
212-delivered, or extended in this state by a healthcare insurer; and 8
213- (ii) A health benefit program receiving state or 9
214-federal appropriations from the State of Arkansas, including the Arkansas 10
215-Medicaid Program and the Arkansas Health and Opportunity for Me Program 11
216-established by the Arkansas Health and Opportunity for Me Act of 2021, § 23 -12
217-61-1001 et seq., or any successor program. 13
218- (B) “Health benefit plan” includes: 14
219- (i) Indemnity and managed care plans; and 15
220- (ii) Nonfederal governmental plans as defined in 29 16
221-U.S.C. § 1002(32), as it existed on January 1, 2025. 17
222- (C) “Health benefit plan” does not include: 18
223- (i) A plan that provides only dental benefits or eye 19
224-and vision care benefits; 20
225- (ii) A disability income plan; 21
226- (iii) A credit insurance plan; 22
227- (iv) Insurance coverage issued as a supplement to 23
228-liability insurance; 24
229- (v) A medical payment under an automobile or 25
230-homeowners insurance plan; 26
231- (vi) A health benefit plan provided under Arkansas 27
232-Constitution, Article 5, § 32, the Workers' Compensation Law, § 11 -9-101 et 28
233-seq., or the Public Employee Workers' Compensation Act, § 21 -5-601 et seq.; 29
234- (vii) A plan that provides only indemnity for 30
235-hospital confinement; 31
236- (viii) An accident-only plan; 32
237- (ix) A specified disease plan; or 33
238- (x) A long-term-care-only plan; and 34
239- (2)(A) "Healthcare insurer" means an entity subject to the 35
240-insurance laws of this state or the jurisdiction of the Insurance 36 As Engrossed: H2/11/25 HB1298
241-
242- 7 02-11-2025 09:49:38 ANS021
243-
244-
245-Commissioner that contracts or offers to contract to provide health insurance 1
246-coverage, including without limitation an insurance company, a hospital and 2
247-medical service corporation, a health maintenance organization, a self -3
248-insured governmental or church plan in this state, or the Arkansas Medicaid 4
249-Program. 5
250-(B) "Healthcare insurer" does not include an entity that 6
251-provides only dental benefits or eye and vision care benefits . 7
252- 8
253- /s/L. Johnson 9
254- 10
78+ 3 01/29/2025 9:15:37 AM ANS021
79+services, at the insurer's option, may be paid directly to the hospital or 1
80+person rendering the services, but the policy may not shall not require that 2
81+the service be rendered by a particular hospital or person. 3
82+ (2) Payment so made shall discharge made under subdivision 4
83+(b)(1) of this section discharges the insurer's obligation with respect to 5
84+the amount of insurance paid. 6
85+ (c) An insurer shall pay a claim for any indemnity provided by the 7
86+policy on account of hospital, nursing, medical, or surgical services 8
87+directly to the healthcare provider that provided the service for an out -of-9
88+network claim. 10
25589 11
256-APPROVED: 3/18/25 12
257- 13
258- 14
259- 15
260- 16
261- 17
262- 18
263- 19
264- 20
265- 21
266- 22
267- 23
268- 24
269- 25
270- 26
271- 27
272- 28
90+ SECTION 3. Arkansas Code § 23 -86-112 is amended to read as follows: 12
91+ 23-86-112. Group accident and health insurance — Direct payment of 13
92+hospital or medical services. 14
93+ (a) On Except as provided under subsection (c) of this section, on 15
94+request by the group policyholder, any group accident and health insurance 16
95+policy may provide that all or any portion of any indemnities provided by any 17
96+policy on account of hospital, nursing, medical, or surgical services may be 18
97+paid, at the insurer's option, directly to the hospital or person rendering 19
98+such services, but the policy may not shall not require that the service be 20
99+rendered by a particular hospital or person. 21
100+ (b) Payment so made made under subsection (a) of this section shall 22
101+discharge the insurer's obligation with respect to the amount of insurance 23
102+paid. 24
103+ (c) An insurer shall pay a claim for any indemnity provided by the 25
104+policy on account of hospital, nursing, medical, or surgical services 26
105+directly to the healthcare provider that provided the service for an out -of-27
106+network claim. 28
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