Stricken language would be deleted from and underlined language would be added to present law. *JMB365* 02/19/2025 5:00:39 PM JMB365 State of Arkansas 1 95th General Assembly A Bill 2 Regular Session, 2025 SENATE BILL 264 3 4 By: Senator Irvin 5 By: Representative L. Johnson 6 7 For An Act To Be Entitled 8 AN ACT TO ESTABLISH THE ARKANSAS PRIMARY CARE PAYMENT 9 IMPROVEMENT WORKING GROUP; AND FOR OTHER PURPOSES. 10 11 12 Subtitle 13 TO ESTABLISH THE ARKANSAS PRIMARY CARE 14 PAYMENT IMPROVEMENT WORKING GROUP. 15 16 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 17 18 SECTION 1. DO NOT CODIFY. Legislative findings and intent. 19 (a) The General Assembly finds that: 20 (1) There is extensive data demonstrating that a population’s 21 increased access to quality primary care reduces overall healthcare costs and 22 improves health outcomes; 23 (2) Without access to high -quality primary care, healthcare 24 costs rise, preventable health issues escalate, and chronic disease burden 25 worsens; 26 (3) Studies demonstrate that investing more in primary care 27 reduces health system costs and improves a population’s health; and 28 (4) A population’s increased access to primary care results in 29 fewer emergency department visits, hospital stays, and surgeries. 30 (b) It is the intent of the General Assembly to form a working group 31 to better understand the primary care system in this state and its effect on 32 health outcomes for Arkansans. 33 34 SECTION 2. DO NOT CODIFY. TEMPORARY LANGUAGE. Arkansas Primary Care 35 Payment Improvement Working Group. 36 SB264 2 02/19/2025 5:00:39 PM JMB365 (a) There is established the Arkansas Primary Care Payment Improvement 1 Working Group, to be composed of the following eight (8) members: 2 (1) The Secretary of the Department of Human Services, or his or 3 her designee; 4 (2) The Insurance Commissioner, or his or her designee; 5 (3) A designee of the Arkansas Center for Health Improvement; 6 (4) A physician representative of the primary care community in 7 this state, as selected by the Arkansas Academy of Family Physicians, Inc.; 8 (5) A pediatrician representative of the primary care community 9 in this state, as selected by the Arkansas Chapter. American Academy of 10 Pediatrics; 11 (6) An advanced practice registered nurse representative of the 12 primary care community in this state, as selected by the Arkansas Nurses 13 Association; 14 (7) A representative of the Arkansas commercial health insurance 15 community from an Arkansas -based insurer, as selected by America’s Health 16 Insurance Plans; and 17 (8) A practicing primary care physician as selected by the 18 Arkansas Medical Society, Inc. 19 (b) The member of the working group designated by the Arkansas Chapter 20 of the Arkansas Academy of Family Physicians, Inc., shall serve as Chair of 21 the Arkansas Primary Care Payment Improvement Working Group and be 22 responsible for scheduling regular meetings of the group. 23 (c) All members of the working group are voting members. 24 (d) Any vacancies that occur for any membership positions that are not 25 held as a function of office shall be filled by the selecting body upon 26 vacancy. 27 (e) The working group shall: 28 (1)(A) Establish a definition of primary care to be utilized by 29 the working group. 30 (B) The definition shall be applicable to primary care and 31 services provided under the Arkansas Medicaid Program and commercial 32 insurance plans; 33 (2) Identify any portion of the Arkansas Medicaid Program 34 population that should not be included in the study due to the unique 35 circumstances of the population; 36 SB264 3 02/19/2025 5:00:39 PM JMB365 (3) Create templates for data submission from commercial 1 insurance carriers and the Arkansas Medicaid Program; 2 (4) Conduct an evaluation of the current amount spent on primary 3 care and other healthcare services, both as it relates to the Arkansas 4 Medicaid Program and the commercial insurance carriers, including Medicare 5 Advantage plans; 6 (5) Determine the adequacy of the primary care delivery system 7 in Arkansas, including the effect this system has on the supply of the 8 primary care providers in this state; 9 (6) Study the primary care payment landscape in other states, 10 specifically considering states that have implemented a primary care spending 11 target; and 12 (7) Identify data collection and measurement systems as a basis 13 for creation of a primary care spending target for the Arkansas Medicaid 14 Program and commercial insurance carriers operating in this state that 15 includes a method by which to measure improvements made toward the primary 16 care spending target. 17 (f)(1) The working group may request and receive data from commercial 18 insurance carriers that do business in this state related to the provision of 19 and payment for primary care as a percentage of overall claims payment. 20 (2) Data received under subdivision (f)(1) of this section shall 21 include without limitation commercial insurance carrier submitted templates 22 that report information such as: 23 (A) Fee-for-service payments; 24 (B) Non-fee-for-service payments; 25 (C) Primary care incentive programs and requirements; 26 (D) The numbers of participating providers; 27 (E) Performance metrics; 28 (F) Prices; 29 (G) Utilization; 30 (H) Total cost trends; and 31 (I) Other information as identified in annual notices. 32 (3) A commercial insurance carrier shall use templates supplied 33 by the group in consultation with the State Insurance Department to provide 34 prospective and retrospective information to the group. 35 (4) The State Insurance Department shall monitor and ensure 36 SB264 4 02/19/2025 5:00:39 PM JMB365 compliance with this section. 1 (g)(1) No later than April 1, 2026, the working group shall submit a 2 report of its findings and recommendations to the Legislative Council. 3 (2) The report shall include a recommendation for a primary care 4 spending target for both commercial insurance carriers and the Arkansas 5 Medicaid Program designed to achieve better health outcomes and decreased 6 healthcare costs for the people of Arkansas. 7 (3) If the Arkansas Medicaid Program or any commercial insurance 8 carrier fails to meet the primary care spending targets adopted by the 9 Legislative Council based on the report under subdivision (g)(1) of this 10 section, the Legislative Council may request that a representative of the 11 entity failing to meet the primary care spending target appear before the 12 Legislative Council and provide details on the efforts the entity is making 13 to meet the primary care spending target. 14 15 SECTION 3. Arkansas Code § 23 -61-906(a), concerning data submission 16 under the Arkansas Healthcare Transparency Initiative, is amended to read as 17 follows: 18 (a) Except as provided in subsection (d) of this section, no later 19 than January 1, 2016, and every quarter thereafter, a submitting entity shall 20 submit health and dental claims data, unique identifiers, and geographic and 21 demographic information for covered individuals as permitted in this 22 subchapter, nonclaims-based payments made to providers, and provider files to 23 the Arkansas Healthcare Transparency Initiative in accordance with standards 24 and procedures adopted by the State Insurance Department. 25 26 27 28 29 30 31 32 33 34 35 36