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 621 3
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By: Senator Irvin 5
By: Representative L. Johnson 6
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For An Act To Be Entitled 8
AN ACT TO AMEND THE TEMPORARY HOSPITAL FACILITY ACT; 9
TO RETROACTIVELY APPLY TO A HEALTHCARE CONTRACT FOR 10
THE BENEFIT OF A TEMPORARY HOSPITAL FACILITY; TO 11
CLARIFY ENFORCEMENT PROVISIONS AGAINST A HEALTHCARE 12
INSURER; TO REQUIRE A HEALTHCARE INSURER TO REIMBURSE 13
A TEMPORARY HOSPITAL FACILITY; TO DECLARE AN 14
EMERGENCY; AND FOR OTHER PURPOSES. 15
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Subtitle 18
TO CLARIFY ENFORCEMENT PROVISIONS 19
AGAINST A HEALTHCARE INSURER; TO 20
RETROACTIVELY APPLY TO A HEALTHCARE 21
CONTRACT FOR THE BENEFIT OF A TEMPORARY 22
HOSPITAL FACILITY; AND TO DECLARE AN 23
EMERGENCY. 24
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 26
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SECTION 1. Arkansas Code § 23 -99-1404 is amended to read as follows: 28
23-99-1404. Healthcare contract — Good-faith cooperation. 29
(a) A healthcare insurer shall cooperate in good faith with a 30
temporary hospital facility in timely executing a healthcare contract. 31
(b)(1) A healthcare insurer shall cooperate in good faith as required 32
in under subsection (a) of this section by timely offering a healthcare 33
contract to a temporary hospital facility no later than thirty (30) days 34
following a demand for a healthcare contract by the temporary hospital 35
facility a healthcare contract that is . 36 SB621
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(2) A healthcare contract under subdivision (b)(1) of this 1
section shall be reflective of the healthcare insurer's standard and 2
reasonable terms and conditions, including without limitation rates of 3
reimbursement. 4
(c) A healthcare contract shall be effective as of the date the 5
temporary hospital facility is licensed as a hospital by the Department of 6
Health. 7
(d) The time period for a healthcare insurer to respond as stated in § 8
23-99-411 does not apply if the request for a healthcare contract is made by 9
a temporary hospital facility. 10
(e)(1) A healthcare insurer shall reimburse a temporary hospital 11
facility at a rate equal to the rate of a regularly -licensed hospital. 12
(2) Subdivision (e)(1) of this section applies retroactively to 13
the date ambulatory surgery center or other healthcare facility became a 14
temporary hospital facility. 15
(f) Except as provided under § 23 -99-1406(b)(2), all remedies, 16
penalties, and authority granted to the Insurance Commissioner under the 17
Trade Practices Act, § 23 -66-201 et seq., including the award of restitution 18
and damages, shall be available to the commissioner for the enforcement of 19
this subchapter. 20
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SECTION 2. Arkansas Code § 23 -99-1406 is amended to read as follows: 22
23-99-1406. Applicability. 23
(a) This subchapter shall apply : 24
(1) Retroactively to the date of issuance of the Governor's 25
Executive Order 20-06; and 26
(2) to To any future public health emergencies if the Centers 27
for Medicare & Medicaid Services and the Department of Health have 28
implemented similar programs as described in § 23 -99-1402(a)(2). 29
(b)(1) The Insurance Commissioner shall enforce this subchapter. 30
(2) The commissioner shall not waive any provision of this 31
subchapter. 32
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SECTION 3. DO NOT CODIFY. Severability clause. 34
If any provision of this act or the application of this act to any 35
person or circumstances is held invalid, the invalidity shall not affect 36 SB621
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other provisions or applications of this act which can be given effect 1
without the invalid provision of application, and to this end, the provisions 2
of this act are declared severable. 3
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SECTION 4. EMERGENCY CLAUSE. It is found and determined by the 5
General Assembly of the State of Arkansas that the absence of adequate 6
statutory enforcement of § 23 -99-1404 has resulted in arbitrary reimbursement 7
practices for temporary hospital facilities; that temporary hospital 8
facilities are not receiving adequate reimbursement; and that this act is 9
immediately necessary to clarify Arkansas law to require the Insurance 10
Commissioner to enforce this act retroactively. Therefore, an emergency is 11
declared to exist, and this act, being immediately necessary for the 12
preservation of the public peace, health, and safety, shall become effective 13
on: 14
(1) The date of its approval by the Governor; 15
(2) If the bill is neither approved nor vetoed by the Governor, 16
the expiration of the period of time during which the Governor may veto the 17
bill; or 18
(3) If the bill is vetoed by the Governor and the veto is 19
overridden, the date the last house overrides the veto. 20
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