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Bill

Bill

HB 1942

TO REQUIRE CERTAIN REIMBURSEMENT RATES FOR HOME- AND COMMUNITY-BASED SERVICES WITHIN RISK-BASED PROVIDER ORGANIZATIONS.

2025 Regular Session Introduced by Breanne Davis and 1 co-sponsor

Act 1023 sets fair reimbursement rates for home- and community-based services in Arkansas, enhancing care quality for Medicaid beneficiaries and supporting service providers.

Notification that HB1942 is now Act 1023
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Bill Summary · HB 1942

Summary of House Bill 1942 (Act 1023)

Purpose and Intent

House Bill 1942, now known as Act 1023, aims to establish specific reimbursement rates for home- and community-based services (HCBS) provided by risk-based provider organizations under the Arkansas Medicaid Program. The bill seeks to ensure that these reimbursement rates are fair, adequate, and promote quality care for Medicaid beneficiaries.

Key Provisions

The bill introduces several significant amendments to the Arkansas Code regarding reimbursement rates and policies for HCBS:

  1. Reimbursement Rate Determination:

    • Reimbursement rates paid by risk-based provider organizations to direct service providers must be mutually agreed upon, ensuring they are not less than the minimum rates established under § 20-77-2709.
    • The rates must guarantee efficiency, economy, quality, and equal access for Medicaid beneficiaries.
  2. Rate Study Requirement:

    • A rate study must be completed by October 1, 2025, to determine the minimum reimbursement rates for HCBS.
    • The study will cover services under the Community and Employment Support 1915(c) waiver and the Section 1915(i) state plan amendment.
  3. Cost Factors Development:

    • The Arkansas Department of Human Services (DHS) is tasked with developing cost factors and criteria for the rate study, incorporating input from HCBS providers.
    • If the rate study indicates an increase in rates greater than 10%, the DHS may phase in the increase over two years, subject to state appropriations.
  4. Ongoing Rate Review:

    • The DHS is required to conduct a full provider rate review according to a published schedule to ensure that rates remain adequate and aligned with actual costs.

Affected Parties

  • Direct Service Providers: Organizations and individuals providing home- and community-based services will be directly impacted by the new reimbursement rates.
  • Medicaid Beneficiaries: The bill aims to enhance the quality and accessibility of services for individuals enrolled in the Arkansas Medicaid Program.
  • Arkansas Department of Human Services: The DHS will play a crucial role in implementing the provisions of the bill, including conducting the rate study and ongoing reviews.

Procedural Timeline

  • Introduced: March 31, 2025
  • Passed by the House: April 3, 2025
  • Passed by the Senate: April 15, 2025
  • Enrolled and Transmitted to the Governor: April 16, 2025
  • Notification of Act 1023: April 22, 2025

Conclusion

Act 1023 represents a significant step towards ensuring that home- and community-based services in Arkansas are adequately funded and accessible to those in need. By establishing a framework for reimbursement rates and requiring a comprehensive rate study, the legislation aims to improve the quality of care for Medicaid beneficiaries while supporting service providers.

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

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