1 | 1 | | Stricken language would be deleted from and underlined language would be added to present law. |
---|
2 | 2 | | *ANS427* 04/03/2025 5:30:51 PM ANS427 |
---|
3 | 3 | | State of Arkansas 1 |
---|
4 | 4 | | 95th General Assembly A Bill 2 |
---|
5 | 5 | | Regular Session, 2025 SENATE BILL 626 3 |
---|
6 | 6 | | 4 |
---|
7 | 7 | | By: Senator Irvin 5 |
---|
8 | 8 | | By: Representative L. Johnson 6 |
---|
9 | 9 | | 7 |
---|
10 | 10 | | For An Act To Be Entitled 8 |
---|
11 | 11 | | AN ACT TO AMEND THE LAW CONCERNING HEALTHCARE 9 |
---|
12 | 12 | | PROVIDER REIMBURSEMENT; TO REQUIRE FAIR AND 10 |
---|
13 | 13 | | TRANSPARENT REIMBURSEMENT RATES FOR LICENSED 11 |
---|
14 | 14 | | AMBULATORY SURGICAL CENTERS, OUTPATIENT PSYCHIATRIC 12 |
---|
15 | 15 | | CENTERS, AND OUTPATIENT IMAGING FACILITIES; TO ENSURE 13 |
---|
16 | 16 | | PARITY IN INSURANCE PAYMENTS FOR HEALTHCARE SERVICES; 14 |
---|
17 | 17 | | TO AMEND THE BILLING IN THE BEST INTEREST OF PATIENTS 15 |
---|
18 | 18 | | ACT; TO DECLARE AN EMERGENCY; AND FOR OTHER PURPOSES. 16 |
---|
19 | 19 | | 17 |
---|
20 | 20 | | 18 |
---|
21 | 21 | | Subtitle 19 |
---|
22 | 22 | | TO REQUIRE FAIR AND TRANSPARENT 20 |
---|
23 | 23 | | REIMBURSEMENT RATES; TO ENSURE PARITY OF 21 |
---|
24 | 24 | | HEALTHCARE SERVICES; TO AMEND THE 22 |
---|
25 | 25 | | BILLING IN THE BEST INTEREST OF PATIENTS 23 |
---|
26 | 26 | | ACT; AND TO DECLARE AN EMERGENCY. 24 |
---|
27 | 27 | | 25 |
---|
28 | 28 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 26 |
---|
29 | 29 | | 27 |
---|
30 | 30 | | SECTION 1. DO NOT CODIFY. Legislative findings and intent. 28 |
---|
31 | 31 | | (a) The General Assembly finds that: 29 |
---|
32 | 32 | | (1) Disparities in the reimbursement rates for medical and 30 |
---|
33 | 33 | | imaging services performed at hospital -based outpatient departments and 31 |
---|
34 | 34 | | other licensed outpatient healthcare facilities can create barriers to 32 |
---|
35 | 35 | | competition, reduce patient access to cost -effective care, and impose 33 |
---|
36 | 36 | | unnecessary financial burdens on healthcare providers providing medical and 34 |
---|
37 | 37 | | outpatient imaging services outside of hospital facilities; 35 |
---|
38 | 38 | | (2) In Ark. Blue Cross & Blue Shield v. Freeway Surgery Ctr., 36 SB626 |
---|
39 | 39 | | |
---|
40 | 40 | | 2 04/03/2025 5:30:51 PM ANS427 |
---|
41 | 41 | | 2024 Ark. App. 540, the Arkansas Court of Appeals interpreted Arkansas law in 1 |
---|
42 | 42 | | a manner that permits insurers to reimburse licensed ambulatory surgical 2 |
---|
43 | 43 | | centers at rates lower than those paid to hospital -based facilities for the 3 |
---|
44 | 44 | | same outpatient services despite the clear legislative intent to ensure 4 |
---|
45 | 45 | | reimbursement on an equal basis; 5 |
---|
46 | 46 | | (3) The interpretation in Ark. Blue Cross & Blue Shield v. 6 |
---|
47 | 47 | | Freeway Surgery Ctr., 2024 Ark. App. 540. undermines competition in the 7 |
---|
48 | 48 | | healthcare marketplace, disincentivizes cost -efficient alternatives to 8 |
---|
49 | 49 | | hospital-based care, and imposes financial hardships on providers operating 9 |
---|
50 | 50 | | in nonhospital settings; and 10 |
---|
51 | 51 | | (4) Transparency in reimbursement methodologies will promote 11 |
---|
52 | 52 | | fairness in the healthcare marketplace and ensure that insurers comply with 12 |
---|
53 | 53 | | existing state laws governing provider reimbursement. 13 |
---|
54 | 54 | | (b) It is the intent of the General Assembly in enacting this act to: 14 |
---|
55 | 55 | | (1) Ensure fair and equitable reimbursement rates for medical or 15 |
---|
56 | 56 | | imaging services performed at licensed ambulatory surgical centers, 16 |
---|
57 | 57 | | outpatient psychiatric centers, and outpatient imaging facilities; 17 |
---|
58 | 58 | | (2) Amend the law to clarify that insurers shall not reimburse 18 |
---|
59 | 59 | | licensed ambulatory surgical centers at rates lower than those applied to 19 |
---|
60 | 60 | | hospital-based outpatient departments for equivalent healthcare services, 20 |
---|
61 | 61 | | thereby making the holding in Ark. Blue Cross & Blue Shield v. Freeway 21 |
---|
62 | 62 | | Surgery Ctr., 2024 Ark. App. 540, no longer applicable; 22 |
---|
63 | 63 | | (3) Reaffirm the requirement that insurers establish fair, 23 |
---|
64 | 64 | | transparent, and nondiscriminatory reimbursement methodologies that ensure 24 |
---|
65 | 65 | | insurers reimburse all licensed healthcare facilities on an equal basis for 25 |
---|
66 | 66 | | performing the same medical, surgical, or imaging services under § 23 -79-115; 26 |
---|
67 | 67 | | and 27 |
---|
68 | 68 | | (4) Require insurers to: 28 |
---|
69 | 69 | | (A) Reimburse licensed ambulatory surgical centers, 29 |
---|
70 | 70 | | outpatient imaging providers' facilities or centers, and outpatient 30 |
---|
71 | 71 | | psychiatric centers on an equal basis as hospitals and hospital -based 31 |
---|
72 | 72 | | outpatient departments for the same medical, surgical, and imaging services; 32 |
---|
73 | 73 | | (B) Disclose the insurer's reimbursement methodologies and 33 |
---|
74 | 74 | | rates to contracted providers; and 34 |
---|
75 | 75 | | (C) Ensure that reimbursement rates for services at 35 |
---|
76 | 76 | | ambulatory surgical centers, outpatient imaging providers facilities or 36 SB626 |
---|
77 | 77 | | |
---|
78 | 78 | | 3 04/03/2025 5:30:51 PM ANS427 |
---|
79 | 79 | | centers, and outpatient psychiatric centers: 1 |
---|
80 | 80 | | (i) Are not set below ninety percent (90%) of the 2 |
---|
81 | 81 | | average hospital-based outpatient rate for the same service in the applicable 3 |
---|
82 | 82 | | county or otherwise in county with the closest hospital facility; and 4 |
---|
83 | 83 | | (ii) Apply retroactively to all reimbursement claims 5 |
---|
84 | 84 | | and contracts in effect as of the effective date of this act, including any 6 |
---|
85 | 85 | | pending claims, disputes, or litigation concerning the reimbursement of 7 |
---|
86 | 86 | | services provided by ambulatory surgical centers, outpatient imaging 8 |
---|
87 | 87 | | providers' facilities or centers, and outpatient psychiatric centers. 9 |
---|
88 | 88 | | 10 |
---|
89 | 89 | | SECTION 2. Arkansas Code § 23 -79-101 is amended to read as follows: 11 |
---|
90 | 90 | | 23-79-101. Definitions. 12 |
---|
91 | 91 | | As used in this chapter: 13 |
---|
92 | 92 | | (1) "Excepted benefits" means benefits under one (1) or more, or 14 |
---|
93 | 93 | | any combination thereof, of the following: 15 |
---|
94 | 94 | | (A) Benefits not subject to requirements, including 16 |
---|
95 | 95 | | without limitation: 17 |
---|
96 | 96 | | (i) Coverage only for accident or disability income 18 |
---|
97 | 97 | | insurance, or any combination thereof; 19 |
---|
98 | 98 | | (ii) Coverage issued as a supplement to liability 20 |
---|
99 | 99 | | insurance; 21 |
---|
100 | 100 | | (iii) Liability insurance, including general 22 |
---|
101 | 101 | | liability insurance and automobile liability insurance; 23 |
---|
102 | 102 | | (iv) Workers' compensation or similar insurance; 24 |
---|
103 | 103 | | (v) Automobile medical payment insurance; 25 |
---|
104 | 104 | | (vi) Credit-only insurance; and 26 |
---|
105 | 105 | | (vii) Other similar insurance coverage, specified in 27 |
---|
106 | 106 | | regulations, under which benefits for medical care are secondary or 28 |
---|
107 | 107 | | incidental to other insurance benefits; 29 |
---|
108 | 108 | | (B) Limited-scope dental or vision benefits; 30 |
---|
109 | 109 | | (C) Benefits for long -term care, nursing home care, home 31 |
---|
110 | 110 | | health care, community -based care, or any combination thereof; 32 |
---|
111 | 111 | | (D) Coverage only for a specified disease or illness; 33 |
---|
112 | 112 | | (E) Hospital indemnity or other fixed indemnity insurance; 34 |
---|
113 | 113 | | and 35 |
---|
114 | 114 | | (F) Medicare supplemental health insurance as defined 36 SB626 |
---|
115 | 115 | | |
---|
116 | 116 | | 4 04/03/2025 5:30:51 PM ANS427 |
---|
117 | 117 | | under section 1882(g)(1) of the Social Security Act, 42 U.S.C. § 1 |
---|
118 | 118 | | 1395ss(g)(1), coverage supplemental to the coverage provided under 10 U.S.C. 2 |
---|
119 | 119 | | § 1071 et seq., and similar supplemental coverage; 3 |
---|
120 | 120 | | (2) "Hospital-based outpatient department" means a healthcare 4 |
---|
121 | 121 | | facility that provides outpatient services to a patient at an on -site 5 |
---|
122 | 122 | | hospital-operated outpatient clinic or other hospital -affiliated clinic 6 |
---|
123 | 123 | | location; 7 |
---|
124 | 124 | | (3) "Hospital-based outpatient department service" means a 8 |
---|
125 | 125 | | healthcare service paid with an insurer’s payment system to a hospital for 9 |
---|
126 | 126 | | outpatient services, including without limitation imaging, surgery, and 10 |
---|
127 | 127 | | medical services, that are performed at a hospital -based outpatient 11 |
---|
128 | 128 | | department; 12 |
---|
129 | 129 | | (4) "Outpatient imaging facility or center" means a healthcare 13 |
---|
130 | 130 | | facility or provider that provides diagnostic and advanced imaging services 14 |
---|
131 | 131 | | to patients and uses Current Procedural Terminology codes 70010 –79999 to bill 15 |
---|
132 | 132 | | for the facility component of imaging services; 16 |
---|
133 | 133 | | (5) "Policy" means the written contract of or written agreement 17 |
---|
134 | 134 | | for or effecting insurance, by whatever name called, and includes all 18 |
---|
135 | 135 | | clauses, riders, endorsements, and papers made a part thereof; and 19 |
---|
136 | 136 | | (3)(A)(6)(A) "Premium" is the consideration for insurance, by 20 |
---|
137 | 137 | | whatever name called. 21 |
---|
138 | 138 | | (B) Any assessment, or any membership, policy, survey, 22 |
---|
139 | 139 | | inspection, service, or similar fee or charge in consideration for a policy 23 |
---|
140 | 140 | | is deemed part of the premium ; and 24 |
---|
141 | 141 | | (7) "The same or similar healthcare service" means a healthcare 25 |
---|
142 | 142 | | service provided to a patient identified by the same or a substantially 26 |
---|
143 | 143 | | similar Current Procedural Terminology code developed by the American Medical 27 |
---|
144 | 144 | | Association. 28 |
---|
145 | 145 | | 29 |
---|
146 | 146 | | SECTION 3. Arkansas Code § 23 -79-115 is amended to read as follows: 30 |
---|
147 | 147 | | 23-79-115. Entitlement notwithstanding policy provisions — Services 31 |
---|
148 | 148 | | performed by outpatient centers. 32 |
---|
149 | 149 | | (a)(1)(A) Notwithstanding any provisions of any individual or group 33 |
---|
150 | 150 | | accident and health insurance policy, or any provision of a policy, contract, 34 |
---|
151 | 151 | | plan, or agreement covering hospital or medical services, in cases in which 35 |
---|
152 | 152 | | the policy, contract, plan, or agreement provides for payment or 36 SB626 |
---|
153 | 153 | | |
---|
154 | 154 | | 5 04/03/2025 5:30:51 PM ANS427 |
---|
155 | 155 | | reimbursement for any healthcare service provided by hospitals or related 1 |
---|
156 | 156 | | facilities When an insurer under a policy, contract, plan, or agreement 2 |
---|
157 | 157 | | agrees to pay or reimburse for a healthcare service provided at or by a 3 |
---|
158 | 158 | | hospital or related facility as defined in § 20-9-201 or § 20-10-213, the 4 |
---|
159 | 159 | | healthcare provider, healthcare facility, or other person entitled to payment 5 |
---|
160 | 160 | | or reimbursement for any healthcare services at a licensed ambulatory surgery 6 |
---|
161 | 161 | | center, outpatient surgery center, or outpatient imaging facility or center 7 |
---|
162 | 162 | | under the policy, contract, plan, or agreement and is entitled to payment or 8 |
---|
163 | 163 | | reimbursement on an equal basis for the service when the service is provided 9 |
---|
164 | 164 | | by facilities licensed as outpatient surgery centers under §§ 20 -9-214 and 10 |
---|
165 | 165 | | 20-9-215 be payment or reimbursement at a rate that is no less than ninety 11 |
---|
166 | 166 | | percent (90%) of the rate paid to a hospital or related facility for the same 12 |
---|
167 | 167 | | or similar healthcare service, as identified by the its designated Current 13 |
---|
168 | 168 | | Procedural Terminology code . 14 |
---|
169 | 169 | | (B) This subdivision (a)(1) applies notwithstanding any 15 |
---|
170 | 170 | | provision of: 16 |
---|
171 | 171 | | (i) An individual or group accident and health 17 |
---|
172 | 172 | | insurance policy; 18 |
---|
173 | 173 | | (ii) A policy, contract, plan, or agreement covering 19 |
---|
174 | 174 | | hospital or medical services; 20 |
---|
175 | 175 | | (iii) A network participation agreement; or 21 |
---|
176 | 176 | | (iv) An agreement between an insurer and a 22 |
---|
177 | 177 | | healthcare provider. 23 |
---|
178 | 178 | | (2) This subsection Subdivision (a)(1) of this section applies 24 |
---|
179 | 179 | | to insurance policies and hospital service corporation contracts that are 25 |
---|
180 | 180 | | delivered or issued for delivery in this state more than one hundred twenty 26 |
---|
181 | 181 | | (120) days after July 6, 1977, and to such other contracts, plans, or 27 |
---|
182 | 182 | | agreements that are entered into or effectuated in this state more than one 28 |
---|
183 | 183 | | hundred twenty (120) days after July 6, 1977 , including without limitation 29 |
---|
184 | 184 | | network participation agreements or any agreement between an insurer and a 30 |
---|
185 | 185 | | healthcare provider. 31 |
---|
186 | 186 | | (b)(1)(A) Notwithstanding any provisions of any individual or group 32 |
---|
187 | 187 | | accident and health insurance policy, or any provision of a policy, contract, 33 |
---|
188 | 188 | | plan, or agreement covering hospital or medical services, in cases in which 34 |
---|
189 | 189 | | the policy, contract, plan, or agreement provides for payment or 35 |
---|
190 | 190 | | reimbursement for any healthcare service provided by hospitals or related 36 SB626 |
---|
191 | 191 | | |
---|
192 | 192 | | 6 04/03/2025 5:30:51 PM ANS427 |
---|
193 | 193 | | facilities When an insurer under a policy, contract, plan, or agreement 1 |
---|
194 | 194 | | agrees to pay or reimburse for a healthcare service provided at or by a 2 |
---|
195 | 195 | | hospital or related facility as defined in § 20-9-201 or § 20-10-213, the 3 |
---|
196 | 196 | | healthcare provider, healthcare facility, or other the person entitled to 4 |
---|
197 | 197 | | payment or reimbursement or services for any healthcare services at a 5 |
---|
198 | 198 | | licensed ambulatory surgery center, outpatient surgery center, or outpatient 6 |
---|
199 | 199 | | imaging facility or center under the policy, contract, plan, or agreement is 7 |
---|
200 | 200 | | entitled to payment or reimbursement on an equal basis for the service when 8 |
---|
201 | 201 | | the service is provided by facilities licensed as outpatient psychiatric 9 |
---|
202 | 202 | | centers under §§ 20-9-214 and 20-9-215 be paid or reimbursed at a rate that 10 |
---|
203 | 203 | | is no less than ninety percent (90%) of the rate paid to a hospital or 11 |
---|
204 | 204 | | related facility for the same or similar healthcare service, as identified by 12 |
---|
205 | 205 | | the its designated Current Procedural Terminology code in the same geographic 13 |
---|
206 | 206 | | area. 14 |
---|
207 | 207 | | (B) This subdivision (b)(1) shall apply notwithstanding 15 |
---|
208 | 208 | | any provision of: 16 |
---|
209 | 209 | | (i) An individual or group accident and health 17 |
---|
210 | 210 | | insurance policy; 18 |
---|
211 | 211 | | (ii) A policy, contract, plan, or agreement covering 19 |
---|
212 | 212 | | hospital or medical services; 20 |
---|
213 | 213 | | (iii) A network participation agreement; or 21 |
---|
214 | 214 | | (iv) An agreement between an insurer and a 22 |
---|
215 | 215 | | healthcare provider. 23 |
---|
216 | 216 | | (2) This subsection Subdivision (b)(1) of this section applies 24 |
---|
217 | 217 | | to insurance policies and hospital service corporation contracts that are 25 |
---|
218 | 218 | | delivered or issued for delivery in this state more than one hundred twenty 26 |
---|
219 | 219 | | (120) days after July 20, 1979, and to such other contracts, plans, or 27 |
---|
220 | 220 | | agreements that are entered into or effectuated in this state more than one 28 |
---|
221 | 221 | | hundred twenty (120) days after July 20, 1979 , including without limitation 29 |
---|
222 | 222 | | network participation agreements or any agreements between an insurer and a 30 |
---|
223 | 223 | | healthcare provider. 31 |
---|
224 | 224 | | (c) The purpose of this section is to ensure that a healthcare 32 |
---|
225 | 225 | | provider, a healthcare facility, or other person entitled to payment or 33 |
---|
226 | 226 | | reimbursement for any healthcare service from an insurer is paid or 34 |
---|
227 | 227 | | reimbursed at a rate no more than ten percent (10%) less than the amount paid 35 |
---|
228 | 228 | | or reimbursed to a hospital for the same or similar healthcare service, as 36 SB626 |
---|
229 | 229 | | |
---|
230 | 230 | | 7 04/03/2025 5:30:51 PM ANS427 |
---|
231 | 231 | | identified by its designated Current Procedural Terminology code, in the same 1 |
---|
232 | 232 | | geographic area if the healthcare service is performed at an ambulatory 2 |
---|
233 | 233 | | surgical center, outpatient surgical center, outpatient imaging center or 3 |
---|
234 | 234 | | facility, or outpatient psychiatric center, subject to the following: 4 |
---|
235 | 235 | | (1)(A) An insurer may consider and apply the Patient Protection 5 |
---|
236 | 236 | | Act of 1995, § 23-99-201 et seq., and § 23 -99-801 et seq. when establishing a 6 |
---|
237 | 237 | | rate for payment or reimbursement for a healthcare service that is provided 7 |
---|
238 | 238 | | at an outpatient surgery center licensed under §§ 20 -9-214 and 20-9-215, an 8 |
---|
239 | 239 | | outpatient imagining facility or center, and an outpatient psychiatric center 9 |
---|
240 | 240 | | if the insurer annually certifies compliance with this section and § 23 -99-10 |
---|
241 | 241 | | 204 with the State Insurance Department. 11 |
---|
242 | 242 | | (B) The certification required under subdivision (c)(1)(A) 12 |
---|
243 | 243 | | of this section shall include the following information: 13 |
---|
244 | 244 | | (i)(a) The insurer’s methodology for determining 14 |
---|
245 | 245 | | payment or reimbursement rates to include the factors, mathematical 15 |
---|
246 | 246 | | computations, and weights considered by the insurer in determining each 16 |
---|
247 | 247 | | individual healthcare provider’s reimbursement rate. 17 |
---|
248 | 248 | | (b) The factors under subdivision 18 |
---|
249 | 249 | | (c)(1)(B)(i)(a) of this section shall include without limitation: 19 |
---|
250 | 250 | | (1) The healthcare provider type; 20 |
---|
251 | 251 | | (2) Geographic location; 21 |
---|
252 | 252 | | (3) Complexity of the medical service; 22 |
---|
253 | 253 | | (4) Healthcare provider’s contractual 23 |
---|
254 | 254 | | agreement; 24 |
---|
255 | 255 | | (5) Quality measures, such as patient 25 |
---|
256 | 256 | | satisfaction, clinical outcomes, and adherence to clinical guidelines or 26 |
---|
257 | 257 | | performance metrics; 27 |
---|
258 | 258 | | (6) Application of utilization control 28 |
---|
259 | 259 | | measures, such as prior authorization or case management, to ensure services 29 |
---|
260 | 260 | | are medically necessary and cost -effective; 30 |
---|
261 | 261 | | (7) Influence of service volume or case -31 |
---|
262 | 262 | | load in determining the reimbursement rate; 32 |
---|
263 | 263 | | (8) Reimbursement adjustments to account 33 |
---|
264 | 264 | | for the risk profiles of the healthcare provider’s patient population, such 34 |
---|
265 | 265 | | as adjusting for high -risk patient groups requiring more intensive care; and 35 |
---|
266 | 266 | | (9) Any other factors deemed pertinent 36 SB626 |
---|
267 | 267 | | |
---|
268 | 268 | | 8 04/03/2025 5:30:51 PM ANS427 |
---|
269 | 269 | | by the Insurance Commissioner; 1 |
---|
270 | 270 | | (ii)(a) A schedule of reimbursement rates for each 2 |
---|
271 | 271 | | healthcare provider with which the insurer maintains an agreement referenced 3 |
---|
272 | 272 | | in subsections (a) and (b) of this section based on the class of healthcare 4 |
---|
273 | 273 | | provider and geographic location, a copy of which shall also be provided to 5 |
---|
274 | 274 | | applicant healthcare providers. 6 |
---|
275 | 275 | | (b) The amount of information included on a 7 |
---|
276 | 276 | | schedule of reimbursement rates under subdivision (c)(1)(B)(ii)(a) of this 8 |
---|
277 | 277 | | section shall be comprehensive enough to enable the healthcare provider to 9 |
---|
278 | 278 | | determine the manner in which the healthcare provider is paid and the amount 10 |
---|
279 | 279 | | that a healthcare provider will be paid under the contract for the healthcare 11 |
---|
280 | 280 | | provider’s services. 12 |
---|
281 | 281 | | (c) The schedule of reimbursement rates or 13 |
---|
282 | 282 | | other information submitted to a healthcare provider under this section shall 14 |
---|
283 | 283 | | include a description of the processes and factors that may affect the actual 15 |
---|
284 | 284 | | amount paid to the healthcare provider, including without limitation 16 |
---|
285 | 285 | | copayments, coinsurance, deductibles, risk -sharing arrangements, and 17 |
---|
286 | 286 | | liability of third parties. 18 |
---|
287 | 287 | | (d) If an actual payment for the procedures 19 |
---|
288 | 288 | | cannot be ascertained from the fee schedule or other information submitted to 20 |
---|
289 | 289 | | a healthcare provider under this section, the insurer shall provide an 21 |
---|
290 | 290 | | explanation of the methodology used to determine actual payment for 22 |
---|
291 | 291 | | procedures frequently performed by the healthcare provider that involve 23 |
---|
292 | 292 | | combinations of services or payment codes, such as the relative value unit 24 |
---|
293 | 293 | | system and conversion factor, the percentage of Medicare payment system, or 25 |
---|
294 | 294 | | percentage of billed charges. 26 |
---|
295 | 295 | | (e) As applicable, the methodology disclosure 27 |
---|
296 | 296 | | provided for in this section shall include the name of any relative value 28 |
---|
297 | 297 | | system, the version, edition, or publication date of the relative value 29 |
---|
298 | 298 | | system, and any applicable conversion to the relative value system or 30 |
---|
299 | 299 | | modification to the relative value system to account for the geographic 31 |
---|
300 | 300 | | location in which the healthcare provider practices; 32 |
---|
301 | 301 | | (iii) An analysis of any disparity in reimbursement 33 |
---|
302 | 302 | | rates among healthcare providers; and 34 |
---|
303 | 303 | | (iv) If an insurer employs or utilizes a standard 35 |
---|
304 | 304 | | deviation in its comparative reimbursement analysis, a detailed narrative 36 SB626 |
---|
305 | 305 | | |
---|
306 | 306 | | 9 04/03/2025 5:30:51 PM ANS427 |
---|
307 | 307 | | explaining the reason for the disparity and the mathematical basis for which 1 |
---|
308 | 308 | | the disparate reimbursement rates were derived. 2 |
---|
309 | 309 | | (2) A healthcare provider who contracts with an insurer shall be 3 |
---|
310 | 310 | | entitled to receive the information contained in subsection (c) of this 4 |
---|
311 | 311 | | section relating to the healthcare provider’s agreement with the insurer if 5 |
---|
312 | 312 | | the healthcare provider is required to first execute a confidentiality 6 |
---|
313 | 313 | | agreement to ensure that the insurer’s confidential or proprietary 7 |
---|
314 | 314 | | information remains confidential. 8 |
---|
315 | 315 | | (3)(A) An insurer shall not establish a payment or reimbursement 9 |
---|
316 | 316 | | rate for a healthcare service that is less than ninety percent (90%) of the 10 |
---|
317 | 317 | | average reimbursement rate for the same or similar healthcare service, as 11 |
---|
318 | 318 | | identified by its designated Current Procedural Terminology code, paid to 12 |
---|
319 | 319 | | hospital-based outpatient departments, in the county where the ambulatory 13 |
---|
320 | 320 | | surgical center, outpatient surgery center, outpatient imaging facility or 14 |
---|
321 | 321 | | center, or outpatient psychiatric center is licensed. 15 |
---|
322 | 322 | | (B) If a hospital or hospital -based outpatient department 16 |
---|
323 | 323 | | is not located in the county where the ambulatory surgical center, outpatient 17 |
---|
324 | 324 | | surgical center, outpatient imaging facility or center, or outpatient 18 |
---|
325 | 325 | | psychiatric center is located, the average reimbursement rate for the 19 |
---|
326 | 326 | | services provided by the ambulatory surgical center, outpatient surgical 20 |
---|
327 | 327 | | center, outpatient imaging facility or center, or outpatient psychiatric 21 |
---|
328 | 328 | | center is determined by the nearest county where a hospital or hospital -based 22 |
---|
329 | 329 | | outpatient department operates; and 23 |
---|
330 | 330 | | (3)(A) An insurer shall not attempt to reduce competition in the 24 |
---|
331 | 331 | | healthcare marketplace by limiting coverage for outpatient services performed 25 |
---|
332 | 332 | | by nonhospital facilities services. 26 |
---|
333 | 333 | | (B) An insurer shall cover services performed at 27 |
---|
334 | 334 | | ambulatory surgical centers, outpatient surgical centers, outpatient imaging 28 |
---|
335 | 335 | | facilities or centers, and outpatient psychiatric centers, if those services 29 |
---|
336 | 336 | | are covered under the insurer’s contracts for hospital -based outpatient 30 |
---|
337 | 337 | | department payment to hospitals in this state. 31 |
---|
338 | 338 | | (d)(1) This section shall not be waived by contract. 32 |
---|
339 | 339 | | (2) An agreement or other arrangement that violates this 33 |
---|
340 | 340 | | subchapter is void. 34 |
---|
341 | 341 | | (e)(1) The Insurance Commissioner: 35 |
---|
342 | 342 | | (i) Shall enforce this subchapter; and 36 SB626 |
---|
343 | 343 | | |
---|
344 | 344 | | 10 04/03/2025 5:30:51 PM ANS427 |
---|
345 | 345 | | (ii) May promulgate rules to implement the requirements of 1 |
---|
346 | 346 | | this subchapter as needed. 2 |
---|
347 | 347 | | (2) All remedies, penalties, and authority granted to the 3 |
---|
348 | 348 | | commissioner under the Trade Practices Act, § 23 -66-201 et seq., including 4 |
---|
349 | 349 | | the award of restitution and damages, shall be available to the commissioner 5 |
---|
350 | 350 | | for the enforcement of this subchapter. 6 |
---|
351 | 351 | | (f) A violation of this section is a deceptive act, as defined by the 7 |
---|
352 | 352 | | Trade Practices Act, § 23 -66-201 et seq. and § 4-88-101 et seq., except that 8 |
---|
353 | 353 | | the statute of limitations for private causes of action against an insurer by 9 |
---|
354 | 354 | | a healthcare provider shall be five (5) years for a violation of this 10 |
---|
355 | 355 | | section. 11 |
---|
356 | 356 | | 12 |
---|
357 | 357 | | SECTION 4. Arkansas Code Title 23, Chapter 99, Subchapter 15, is 13 |
---|
358 | 358 | | amended to add an additional section to read as follows: 14 |
---|
359 | 359 | | 23-99-1505. Prohibition on pricing increases or reduction of fee 15 |
---|
360 | 360 | | schedules. 16 |
---|
361 | 361 | | (a) An insurer shall not increase cost -sharing, premiums, or other 17 |
---|
362 | 362 | | fees, including without limitation per -month payments, on an enrollee, 18 |
---|
363 | 363 | | employer, or any other entity that is responsible for payment of cost -19 |
---|
364 | 364 | | sharing, premiums, or other fees, including without limitation per -month 20 |
---|
365 | 365 | | payments, on behalf of an enrollee for healthcare services under a health 21 |
---|
366 | 366 | | benefit plan or lower existing reimbursement rates for existing hospital 22 |
---|
367 | 367 | | inpatient or outpatient care or to nonhospital outpatient services or 23 |
---|
368 | 368 | | facilities or healthcare providers unless each of the following conditions 24 |
---|
369 | 369 | | are met: 25 |
---|
370 | 370 | | (1) The insurer's excess of capital over its mandatory control 26 |
---|
371 | 371 | | level RBC, as defined in § 23 -63-1302, is less than sixty -five percent (65%); 27 |
---|
372 | 372 | | (2) The insurer's medical loss ratio is ninety percent (90%) or 28 |
---|
373 | 373 | | greater on clinical services and quality improvement; and 29 |
---|
374 | 374 | | (3) The proposed increase receives the approval of the Insurance 30 |
---|
375 | 375 | | Commissioner after the commissioner confirms compliance with this section and 31 |
---|
376 | 376 | | § 23-79-115. 32 |
---|
377 | 377 | | (b)(1) For purposes of this section, the costs associated with 33 |
---|
378 | 378 | | carrying enrollee medical debt is an administrative cost for purposes of 34 |
---|
379 | 379 | | calculating the medical loss ratio. 35 |
---|
380 | 380 | | (2) However, clinical services shall not include any cost -36 SB626 |
---|
381 | 381 | | |
---|
382 | 382 | | 11 04/03/2025 5:30:51 PM ANS427 |
---|
383 | 383 | | sharing. 1 |
---|
384 | 384 | | 2 |
---|
385 | 385 | | SECTION 5. DO NOT CODIFY. Severability. 3 |
---|
386 | 386 | | If any provision of this act or application of this act to any person 4 |
---|
387 | 387 | | or circumstances is held invalid, the invalidity shall not affect other 5 |
---|
388 | 388 | | provisions or applications of this act which can be given effect without the 6 |
---|
389 | 389 | | invalid provision of application, and to this end, the provisions of this act 7 |
---|
390 | 390 | | are declared severable. 8 |
---|
391 | 391 | | 9 |
---|
392 | 392 | | SECTION 6. DO NOT CODIFY. Retroactivity. 10 |
---|
393 | 393 | | This act shall apply retroactively to a reimbursement claim and 11 |
---|
394 | 394 | | contract in effect as of the effective date of this act, including any 12 |
---|
395 | 395 | | pending claims, disputes, or litigation concerning the reimbursement of 13 |
---|
396 | 396 | | services provided by a ambulatory surgical center, outpatient imaging 14 |
---|
397 | 397 | | provider, facility or center, and outpatient psychiatric center. 15 |
---|
398 | 398 | | 16 |
---|
399 | 399 | | SECTION 7. EMERGENCY CLAUSE. It is found and determined by the 17 |
---|
400 | 400 | | General Assembly of the State of Arkansas that the absence of adequate 18 |
---|
401 | 401 | | statutory enforcement of Arkansas Code § 23 -79-115 has resulted in arbitrary 19 |
---|
402 | 402 | | and discriminatory reimbursement practices that threaten the financial 20 |
---|
403 | 403 | | viability of ambulatory surgical centers and outpatient psychiatric centers; 21 |
---|
404 | 404 | | that without immediate intervention by the General Assembly to pass 22 |
---|
405 | 405 | | legislation to clarify enforcement, discriminatory reimbursement practices 23 |
---|
406 | 406 | | will continue to restrict patient access to cost -effective healthcare 24 |
---|
407 | 407 | | providers causing irreparable harm to Arkansas residents; and that this act 25 |
---|
408 | 408 | | is immediately necessary because current Arkansas law does not sufficiently 26 |
---|
409 | 409 | | address transparency in healthcare pricing, the absence of proper enforcement 27 |
---|
410 | 410 | | of health insurer reimbursement rate laws has allowed health insurers to 28 |
---|
411 | 411 | | ignore the application of Arkansas Code § 23 -79-115 that has been the law 29 |
---|
412 | 412 | | since November 17, 1979, that any willing provider laws are subordinate to 30 |
---|
413 | 413 | | the requirements of Arkansas Code § 23 -79-115 and proper adherence to pay -31 |
---|
414 | 414 | | parity statutes ensures patient access to healthcare providers of their 32 |
---|
415 | 415 | | choice, and that it is immediately necessary to protect against deceptive 33 |
---|
416 | 416 | | insurance practices that harm the delivery of healthcare and reimbursement 34 |
---|
417 | 417 | | for healthcare services in Arkansas. Therefore, an emergency is declared to 35 |
---|
418 | 418 | | exist, and this act being immediately necessary for the preservation of the 36 SB626 |
---|
419 | 419 | | |
---|
420 | 420 | | 12 04/03/2025 5:30:51 PM ANS427 |
---|
421 | 421 | | public peace, health, and safety shall become effective on: 1 |
---|
422 | 422 | | (1) The date of its approval by the Governor; 2 |
---|
423 | 423 | | (2) If the bill is neither approved nor vetoed by the Governor, 3 |
---|
424 | 424 | | the expiration of the period of time during which the Governor may veto the 4 |
---|
425 | 425 | | bill; or 5 |
---|
426 | 426 | | (3) If the bill is vetoed by the Governor and the veto is 6 |
---|
427 | 427 | | overridden, the date the last house overrides the veto. 7 |
---|
428 | 428 | | 8 |
---|
429 | 429 | | 9 |
---|
430 | 430 | | 10 |
---|
431 | 431 | | 11 |
---|
432 | 432 | | 12 |
---|
433 | 433 | | 13 |
---|
434 | 434 | | 14 |
---|
435 | 435 | | 15 |
---|
436 | 436 | | 16 |
---|
437 | 437 | | 17 |
---|
438 | 438 | | 18 |
---|
439 | 439 | | 19 |
---|
440 | 440 | | 20 |
---|
441 | 441 | | 21 |
---|
442 | 442 | | 22 |
---|
443 | 443 | | 23 |
---|
444 | 444 | | 24 |
---|
445 | 445 | | 25 |
---|
446 | 446 | | 26 |
---|
447 | 447 | | 27 |
---|
448 | 448 | | 28 |
---|
449 | 449 | | 29 |
---|
450 | 450 | | 30 |
---|
451 | 451 | | 31 |
---|
452 | 452 | | 32 |
---|
453 | 453 | | 33 |
---|
454 | 454 | | 34 |
---|
455 | 455 | | 35 |
---|
456 | 456 | | 36 |
---|