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HB 1700

TO AMEND THE PRIOR AUTHORIZATION TRANSPARENCY ACT; AND TO CLARIFY THE PROCESS OF AN ADVERSE DETERMINATION NOTICE UNDER THE PRIOR AUTHORIZATION TRANSPARENCY ACT.

2025 Regular Session Introduced by Brandon Achor and 1 co-sponsor

Act 638 enhances transparency in Arkansas healthcare by requiring clear adverse determination notices, improving communication for providers and patients about approvals and appeals.

Notification that HB1700 is now Act 638
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Bill Summary · HB 1700

Summary of House Bill 1700 (Act 638)

Purpose and Intent

House Bill 1700, now enacted as Act 638, amends the Prior Authorization Transparency Act in Arkansas. The primary goal of this legislation is to enhance transparency and clarity in the process of adverse determination notices issued by utilization review entities. This aims to improve communication between healthcare providers and insurance companies regarding the approval of medical services.

Key Provisions

The bill introduces several significant changes to existing law, particularly concerning the information that must be included in adverse determination notices:

  1. Adverse Determination Notices:

    • Utilization review entities must provide the name and contact information of a licensed physician for healthcare providers to discuss the adverse determination.
    • If a healthcare provider can demonstrate a violation of the notice requirements through an audio recording, the requested prior authorization will be deemed approved.

  2. Information Requirements:

    • Written or verbal notices must include:
      • The name, title, and contact information of the physician responsible for the adverse determination.
      • The specialty and licensing information of the reviewing physician.
      • A list of clinical criteria and internal guidelines used in the determination.
      • Instructions for appealing the adverse determination, including how to submit supporting materials.

  3. Appeal Process:

    • The bill mandates that subscribers (patients) receive clear explanations of the basis for adverse determinations, including the clinical criteria applied to their specific medical circumstances.
    • Subscribers must be informed about their right to appeal and how to initiate the appeal process.

  4. Additional Requirements:

    • The legislation requires that any request for information related to prior authorization be treated as a formal request for information under the new provisions.

Affected Parties

  • Healthcare Providers: Physicians and other healthcare professionals will benefit from clearer communication and the ability to discuss adverse determinations directly with reviewing physicians.
  • Patients/Subscribers: Patients will have improved access to information regarding their treatment approvals and the appeals process, enhancing their ability to contest adverse determinations.
  • Utilization Review Entities: Insurance companies and other entities conducting utilization reviews will need to comply with the new requirements for transparency and communication.

Procedural Aspects

  • Timeline:

    • The bill was introduced on March 6, 2025, and underwent several legislative actions, including amendments and committee reviews, before being enacted on April 16, 2025.
    • The Senate amendment was adopted on April 10, 2025, which refined the language and requirements of the bill.

  • Legislative Journey: The bill passed through various stages, including committee recommendations and readings in both the House and Senate, before being signed into law.

Conclusion

House Bill 1700 (Act 638) represents a significant step towards enhancing transparency in the healthcare authorization process in Arkansas. By clarifying the requirements for adverse determination notices and improving communication between healthcare providers and insurance entities, the legislation aims to protect patient rights and streamline the approval process for necessary medical services.

Compiled from official sources — confirm details with the bill’s official record.

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