3 | 2 | | *JMB592* 03/31/2025 4:28:40 PM JMB592 |
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4 | 3 | | State of Arkansas 1 |
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5 | 4 | | 95th General Assembly A Bill 2 |
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6 | 5 | | Regular Session, 2025 HOUSE BILL 1942 3 |
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7 | 6 | | 4 |
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8 | 7 | | By: Representative L. Johnson 5 |
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9 | 8 | | By: Senator B. Davis 6 |
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10 | 9 | | 7 |
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11 | 10 | | For An Act To Be Entitled 8 |
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12 | 11 | | AN ACT TO REQUIRE CERTAIN REIMBURSEMENT RATES FOR 9 |
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13 | 12 | | HOME- AND COMMUNITY-BASED SERVICES WITHIN RISK -BASED 10 |
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14 | 13 | | PROVIDER ORGANIZATIONS; AND FOR OTHER PURPOSES. 11 |
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15 | 14 | | 12 |
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16 | 15 | | 13 |
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17 | 16 | | Subtitle 14 |
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18 | 17 | | TO REQUIRE CERTAIN REIMBURSEMENT RATES 15 |
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19 | 18 | | FOR HOME- AND COMMUNITY-BASED SERVICES 16 |
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20 | 19 | | WITHIN RISK-BASED PROVIDER 17 |
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21 | 20 | | ORGANIZATIONS. 18 |
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22 | 21 | | 19 |
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23 | 22 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 20 |
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24 | 23 | | 21 |
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25 | 24 | | SECTION 1. Arkansas Code § 20 -77-2706(d)(1), concerning the 22 |
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26 | 25 | | characteristics and duties of a risk -based provider organization under the 23 |
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27 | 26 | | Medicaid Provider-Led Organized Care Act, is amended to read as follows: 24 |
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28 | 27 | | (d)(1) Except as provided in subdivision (d)(2) of this section, 25 |
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29 | 28 | | reimbursement rates paid by a risk -based provider organization to direct 26 |
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30 | 29 | | service providers shall: 27 |
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31 | 30 | | (A) Be determined by mutual agreement of the risk -based 28 |
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32 | 31 | | provider organization and direct service provider without regard to Medicaid 29 |
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33 | 32 | | provider rates established by the Department of Human Services if the 30 |
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34 | 33 | | reimbursement rates are not less than the minimum rates established under § 31 |
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35 | 34 | | 20-77-2709; and 32 |
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36 | 35 | | (B) Assure efficiency, economy, quality, and equal access 33 |
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37 | 36 | | to enrollable Medicaid beneficiary populations in the same manner as to 34 |
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38 | 37 | | individuals who are not covered by the Arkansas Medicaid Program. 35 |
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39 | 38 | | 36 HB1942 |
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40 | 39 | | |
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42 | 41 | | SECTION 2. Arkansas Code § 20 -77-2706(e)(1), concerning the 1 |
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43 | 42 | | characteristics and duties of a risk -based provider organization under the 2 |
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44 | 43 | | Medicaid Provider-Led Organized Care Act, is amended to read as follows: 3 |
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45 | 44 | | (e)(1) Except as provided in subdivision (e)(2) of this section, all 4 |
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46 | 45 | | policies and procedures regarding the provision of healthcare services by a 5 |
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47 | 46 | | direct service provider shall: 6 |
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48 | 47 | | (A) Be determined by mutual agreement of the risk -based 7 |
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49 | 48 | | provider organization and the direct service provider without regard to 8 |
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50 | 49 | | Medicaid provider rates established by the Department of Human Services if 9 |
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51 | 50 | | the reimbursement rates are not less than the minimum rates established under 10 |
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52 | 51 | | § 20-77-2709; and 11 |
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53 | 52 | | (B) Assure efficiency, economy, quality, and equal access 12 |
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54 | 53 | | to the enrollable Medicaid beneficiary population in the same manner as 13 |
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55 | 54 | | individuals who are not covered by the Arkansas Medicaid Program. 14 |
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56 | 55 | | 15 |
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57 | 56 | | SECTION 3. Arkansas Code Title 20, Chapter 77, Subchapter 27, is 16 |
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58 | 57 | | amended to add an additional section to read as follows: 17 |
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59 | 58 | | 20-77-2709. Home- and community-based services — Rate setting. 18 |
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60 | 59 | | (a)(1) An allowance within the capitation rates for a risk -based 19 |
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61 | 60 | | provider organization shall not be less than the amount needed to pay 20 |
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62 | 61 | | providers the rates arrived at through a rate study to be completed by 21 |
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63 | 62 | | October 1, 2025. 22 |
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64 | 63 | | (2) The rates from a rate study as described in subdivision 23 |
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65 | 64 | | (a)(1) of this section serve as the minimums that risk -based provider 24 |
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66 | 65 | | organizations may pay for home - and community-based services, as authorized 25 |
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67 | 66 | | in 42 C.F.R. § 438.6, as existing on January 1, 2025. 26 |
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68 | 67 | | (b) The rate study under subdivision (a)(1) of this section shall: 27 |
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69 | 68 | | (1) Cover services in the Community and Employment Support 28 |
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70 | 69 | | 1915(c) waiver and the Section 1915(i) of the state plan amendment for the 29 |
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71 | 70 | | coverage under this subchapter; and 30 |
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72 | 71 | | (2) Accurately capture provider costs and other relevant 31 |
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73 | 72 | | considerations that promote economy, efficiency, quality of care, and equal 32 |
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74 | 73 | | access as required by the Centers for Medicare & Medicaid Services under 42 33 |
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75 | 74 | | U.S.C. § 1396a, as existing on January 1, 2025, and in federal regulations 34 |
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76 | 75 | | under 42 C.F.R. Part 447, as existing on January 1, 2025. 35 |
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77 | 76 | | (c)(1) The Department of Human Services shall develop the cost factors 36 HB1942 |
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78 | 77 | | |
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80 | 79 | | and other criteria for the rate study with input from home - and community-1 |
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81 | 80 | | based service providers. 2 |
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82 | 81 | | (2) As no rate study for home - and community-based service 3 |
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83 | 82 | | providers has been conducted since the risk -based provider organizations 4 |
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84 | 83 | | began serving the state, if the outcome of the rate study under subdivision 5 |
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85 | 84 | | (a)(1) of this section produces an increase greater than ten percent (10%), 6 |
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86 | 85 | | the department may be phase in a rate increase across two (2) years as 7 |
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87 | 86 | | authorized by state appropriations and budgets. 8 |
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88 | 87 | | (3) The department shall conduct a full provider rate review in 9 |
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89 | 88 | | accordance with the published rate review schedule to ensure that rates 10 |
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90 | 89 | | remain adequate and aligned with actual costs. 11 |
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91 | 90 | | 12 |
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92 | 91 | | 13 |
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