Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 221 3
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By: Senators B. Davis, J. Dismang, Gilmore, B. Johnson, C. Tucker, D. Wallace, G. Leding 5
By: Representatives L. Johnson, Hudson, Beaty Jr., A. Collins, Achor, K. Brown, Brooks 6
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For An Act To Be Entitled 8
AN ACT TO PROHIBIT RISK -BASED PROVIDER ORGANIZATIONS 9
FROM USING CERTAIN TYPES OF CONTRACTING PRACTICES 10
WHEN CONTRACTING WITH PROVIDERS; TO AMEND THE 11
MEDICAID PROVIDER-LED ORGANIZED CARE ACT; TO DECLARE 12
AN EMERGENCY; AND FOR OTHER PURPOSES. 13
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Subtitle 16
TO PROHIBIT RISK-BASED PROVIDER 17
ORGANIZATIONS FROM USING CERTAIN TYPES 18
OF CONTRACTING PRACTICES WHEN 19
CONTRACTING WITH PROVIDERS; TO AMEND THE 20
MEDICAID PROVIDER-LED ORGANIZED CARE 21
ACT; AND TO DECLARE AN EMERGENCY. 22
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
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SECTION 1. Arkansas Code Title 20, Chapter 77, Subchapter 27, is 26
amended to add an additional section to read as follows: 27
20-77-2709. Prohibitions on discrimination and tying of services in 28
contracts with risk-based provider organizations — Legislative findings. 29
(a) The General Assembly finds that: 30
(1) Risk-based provider organizations, also known as provider -31
led shared savings entities, have engaged in unfair tactics with direct 32
service providers; 33
(2) When a provider will not agree to below costs rates for one 34
(1) service, the risk -based provider organization terminates the direct 35
service provider’s network status for all other services; 36 SB221
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(3) This practice is often referred to as “tying” or "all or 1
nothing" and restricts access to healthcare services by reducing the number 2
of providers available to serve individuals with disabilities; and 3
(4) These negotiating tactics diminish or eliminate the ability 4
of the provider to fairly negotiate rates with the risk -based provider 5
organization. 6
(b) A risk-based provider organization shall not: 7
(1) Tie contracting for one (1) service to another service 8
against a direct service provider’s will; 9
(2) Penalize, terminate, or refuse network admission to a direct 10
service provider who agrees to the terms and conditions for at least one (1) 11
service offered by the risk -based provider organization on the basis that the 12
provider has declined to provide one (1) or more other services on the terms 13
and conditions that the direct service provider is not willing to accept; or 14
(3) Discriminate against or penalize in any way a provider for 15
exercising the rights under this section. 16
(c)(1) A violation of this section is: 17
(A) An unfair trade practice under the Trade Practices 18
Act, § 23-66-201 et seq.; 19
(B) A violation of the Patient Protection Act of 1995, 23 -20
99-201 et seq.; 21
(C) A violation of the any willing provider laws under § 22
23-99-801 et seq.; and 23
(D) A violation of the Unfair Practices Act, § 4 -75-201 et 24
seq. 25
(2) If a healthcare contract with a risk -based provider 26
organization contains a provision that violates this section, that provision 27
is void. 28
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SECTION 2. EMERGENCY CLAUSE. It is found and determined by the 30
General Assembly of the State of Arkansas that contracting and negotiating 31
practices of risk-based provider organizations are negatively impacting the 32
ability of providers to deliver healthcare services to Medicaid 33
beneficiaries; that these practices harm access to healthcare to the most 34
vulnerable individuals such as individuals with disabilities who need 35
healthcare services on an ongoing basis; and that this act is immediately 36 SB221
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necessary to protect the health and safety of the most vulnerable populations 1
in the Arkansas Medicaid Program being served by risk -based provider 2
organizations who are restricting healthcare access. Therefore, an emergency 3
is declared to exist, and this act being immediately necessary for the 4
preservation of the public peace, health, and safety shall become effective 5
on: 6
(1) The date of its approval by the Governor; 7
(2) If the bill is neither approved nor vetoed by the Governor, 8
the expiration of the period of time during which the Governor may veto the 9
bill; or 10
(3) If the bill is vetoed by the Governor and the veto is 11
overridden, the date the last house overrides the veto. 12
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