1 | 1 | | Stricken language would be deleted from and underlined language would be added to present law. |
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2 | 2 | | *ANS426* 04/03/2025 12:14:42 PM ANS426 |
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3 | 3 | | State of Arkansas 1 |
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4 | 4 | | 95th General Assembly A Bill 2 |
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5 | 5 | | Regular Session, 2025 SENATE BILL 621 3 |
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6 | 6 | | 4 |
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7 | 7 | | By: Senator Irvin 5 |
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8 | 8 | | By: Representative L. Johnson 6 |
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9 | 9 | | 7 |
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10 | 10 | | For An Act To Be Entitled 8 |
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11 | 11 | | AN ACT TO AMEND THE TEMPORARY HOSPITAL FACILITY ACT; 9 |
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12 | 12 | | TO RETROACTIVELY APPLY TO A HEALTHCARE CONTRACT FOR 10 |
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13 | 13 | | THE BENEFIT OF A TEMPORARY HOSPITAL FACILITY; TO 11 |
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14 | 14 | | CLARIFY ENFORCEMENT PROVISIONS AGAINST A HEALTHCARE 12 |
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15 | 15 | | INSURER; TO REQUIRE A HEALTHCARE INSURER TO REIMBURSE 13 |
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16 | 16 | | A TEMPORARY HOSPITAL FACILITY; TO DECLARE AN 14 |
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17 | 17 | | EMERGENCY; AND FOR OTHER PURPOSES. 15 |
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18 | 18 | | 16 |
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19 | 19 | | 17 |
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20 | 20 | | Subtitle 18 |
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21 | 21 | | TO CLARIFY ENFORCEMENT PROVISIONS 19 |
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22 | 22 | | AGAINST A HEALTHCARE INSURER; TO 20 |
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23 | 23 | | RETROACTIVELY APPLY TO A HEALTHCARE 21 |
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24 | 24 | | CONTRACT FOR THE BENEFIT OF A TEMPORARY 22 |
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25 | 25 | | HOSPITAL FACILITY; AND TO DECLARE AN 23 |
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26 | 26 | | EMERGENCY. 24 |
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27 | 27 | | 25 |
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28 | 28 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 26 |
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29 | 29 | | 27 |
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30 | 30 | | SECTION 1. Arkansas Code § 23 -99-1404 is amended to read as follows: 28 |
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31 | 31 | | 23-99-1404. Healthcare contract — Good-faith cooperation. 29 |
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32 | 32 | | (a) A healthcare insurer shall cooperate in good faith with a 30 |
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33 | 33 | | temporary hospital facility in timely executing a healthcare contract. 31 |
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34 | 34 | | (b)(1) A healthcare insurer shall cooperate in good faith as required 32 |
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35 | 35 | | in under subsection (a) of this section by timely offering a healthcare 33 |
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36 | 36 | | contract to a temporary hospital facility no later than thirty (30) days 34 |
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37 | 37 | | following a demand for a healthcare contract by the temporary hospital 35 |
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38 | 38 | | facility a healthcare contract that is . 36 SB621 |
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41 | 41 | | (2) A healthcare contract under subdivision (b)(1) of this 1 |
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42 | 42 | | section shall be reflective of the healthcare insurer's standard and 2 |
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43 | 43 | | reasonable terms and conditions, including without limitation rates of 3 |
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44 | 44 | | reimbursement. 4 |
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45 | 45 | | (c) A healthcare contract shall be effective as of the date the 5 |
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46 | 46 | | temporary hospital facility is licensed as a hospital by the Department of 6 |
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47 | 47 | | Health. 7 |
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48 | 48 | | (d) The time period for a healthcare insurer to respond as stated in § 8 |
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49 | 49 | | 23-99-411 does not apply if the request for a healthcare contract is made by 9 |
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50 | 50 | | a temporary hospital facility. 10 |
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51 | 51 | | (e)(1) A healthcare insurer shall reimburse a temporary hospital 11 |
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52 | 52 | | facility at a rate equal to the rate of a regularly -licensed hospital. 12 |
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53 | 53 | | (2) Subdivision (e)(1) of this section applies retroactively to 13 |
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54 | 54 | | the date ambulatory surgery center or other healthcare facility became a 14 |
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55 | 55 | | temporary hospital facility. 15 |
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56 | 56 | | (f) Except as provided under § 23 -99-1406(b)(2), all remedies, 16 |
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57 | 57 | | penalties, and authority granted to the Insurance Commissioner under the 17 |
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58 | 58 | | Trade Practices Act, § 23 -66-201 et seq., including the award of restitution 18 |
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59 | 59 | | and damages, shall be available to the commissioner for the enforcement of 19 |
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60 | 60 | | this subchapter. 20 |
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61 | 61 | | 21 |
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62 | 62 | | SECTION 2. Arkansas Code § 23 -99-1406 is amended to read as follows: 22 |
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63 | 63 | | 23-99-1406. Applicability. 23 |
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64 | 64 | | (a) This subchapter shall apply : 24 |
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65 | 65 | | (1) Retroactively to the date of issuance of the Governor's 25 |
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66 | 66 | | Executive Order 20-06; and 26 |
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67 | 67 | | (2) to To any future public health emergencies if the Centers 27 |
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68 | 68 | | for Medicare & Medicaid Services and the Department of Health have 28 |
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69 | 69 | | implemented similar programs as described in § 23 -99-1402(a)(2). 29 |
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70 | 70 | | (b)(1) The Insurance Commissioner shall enforce this subchapter. 30 |
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71 | 71 | | (2) The commissioner shall not waive any provision of this 31 |
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72 | 72 | | subchapter. 32 |
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73 | 73 | | 33 |
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74 | 74 | | SECTION 3. DO NOT CODIFY. Severability clause. 34 |
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75 | 75 | | If any provision of this act or the application of this act to any 35 |
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76 | 76 | | person or circumstances is held invalid, the invalidity shall not affect 36 SB621 |
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79 | 79 | | other provisions or applications of this act which can be given effect 1 |
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80 | 80 | | without the invalid provision of application, and to this end, the provisions 2 |
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81 | 81 | | of this act are declared severable. 3 |
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82 | 82 | | 4 |
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83 | 83 | | SECTION 4. EMERGENCY CLAUSE. It is found and determined by the 5 |
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84 | 84 | | General Assembly of the State of Arkansas that the absence of adequate 6 |
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85 | 85 | | statutory enforcement of § 23 -99-1404 has resulted in arbitrary reimbursement 7 |
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86 | 86 | | practices for temporary hospital facilities; that temporary hospital 8 |
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87 | 87 | | facilities are not receiving adequate reimbursement; and that this act is 9 |
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88 | 88 | | immediately necessary to clarify Arkansas law to require the Insurance 10 |
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89 | 89 | | Commissioner to enforce this act retroactively. Therefore, an emergency is 11 |
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90 | 90 | | declared to exist, and this act, being immediately necessary for the 12 |
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91 | 91 | | preservation of the public peace, health, and safety, shall become effective 13 |
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92 | 92 | | on: 14 |
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93 | 93 | | (1) The date of its approval by the Governor; 15 |
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94 | 94 | | (2) If the bill is neither approved nor vetoed by the Governor, 16 |
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95 | 95 | | the expiration of the period of time during which the Governor may veto the 17 |
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96 | 96 | | bill; or 18 |
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97 | 97 | | (3) If the bill is vetoed by the Governor and the veto is 19 |
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98 | 98 | | overridden, the date the last house overrides the veto. 20 |
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