Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas
2 94th General Assembly A Bill
3 Regular Session, 2023 SENATE BILL 548
4
5 By: Senator J. Boyd
6 By: Representative D. Ferguson
7
8 For An Act To Be Entitled
9 AN ACT TO AMEND THE LAW CONCERNING THE ASSIGNMENT OF
10 BENEFITS TO A HEALTHCARE PROVIDER; TO REQUIRE CONSENT
11 TO THE ASSIGNMENT OF BENEFITS TO A HEALTHCARE
12 PROVIDER; TO MANDATE NOTICE TO AN ENROLLEE OF THE
13 ASSIGNMENT OF BENEFITS TO A HEALTHCARE PROVIDER; AND
14 FOR OTHER PURPOSES.
15
16
17 Subtitle
18 TO REQUIRE CONSENT TO THE ASSIGNMENT OF
19 BENEFITS TO A HEALTHCARE PROVIDER; AND TO
20 MANDATE NOTICE TO AN ENROLLEE OF THE
21 ASSIGNMENT OF BENEFITS TO A HEALTHCARE
22 PROVIDER.
23
24
25 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
26
27 SECTION 1. Arkansas Code § 23-99-1301(3)(B), concerning the definition
28 of "health benefit plan" used in assignment of benefits to a healthcare
29 provider, is amended to read as follows:
30 (B) “Health benefit plan” does not include:
31 (i) A disability income plan;
32 (ii) A credit insurance plan;
33 (iii) Insurance coverage issued as a supplement to
34 liability insurance;
35 (iv) Medical payments under an automobile or
36 homeowners insurance plan;
*ANS402* 3/30/2023 2:07:38 PM ANS402
 SB548
1 (v) A health benefit plan provided under Arkansas
2 Constitution, Article 5, § 32, the Workers' Compensation Law, § 11-9-101 et
3 seq., or the Public Employee Workers' Compensation Act, § 21-5-601 et seq.;
4 (vi) A plan that provides only indemnity for hospital
5 confinement;
6 (vii) An accident-only plan;
7 (viii) A specified disease plan;
8 (ix) A long-term care insurance plan; or
9 (x) A dental-only plan; or
10 (xi) A vision-only plan;
11
12 SECTION 2. Arkansas Code § 23-99-1302 is amended to read as follows:
13 23-99-1302. Assignment of benefits — Consent and notice required.
14 (a) An enrollee, through an assignment of benefits, may assign to a
15 healthcare provider the enrollee's right to receive reimbursement for any
16 healthcare service rendered by a healthcare provider regardless of whether
17 the healthcare provider is a participating provider or an out-of-network
18 provider.
19 (b)(1) A healthcare provider that is provided an assignment of
20 benefits by an enrollee under this section shall provide notice to the payor
21 of the assignment of benefits with a claim for payment for healthcare
22 services provided to an enrollee.
23 (2) If the healthcare provider providing notice to the payor is
24 an out-of-network provider, the notice shall be accompanied by a complete
25 copy of the assignment of benefits bearing the enrollee's signature and the
26 date the assignment was executed.
27 (c)(1) A payor, upon receipt of the claim and notice of the assignment
28 of benefits submitted by the healthcare provider, shall promptly remit
29 payment of the claim directly to the healthcare provider.
30 (2) When payment is made directly to the healthcare provider,
31 the payor shall give written notice of the payment to an enrollee.
32 (3) A violation of this subsection is:
33 (A) An unfair trade practice under § 23-66-206; and
34 (B) Subject to the Trade Practices Act, § 23-66-201 et
35 seq.
36 (d)(1)(A) If an enrollee executes an assignment of benefits and the
2 3/30/2023 2:07:38 PM ANS402
 SB548
1 healthcare provider submits notice of that assignment of benefits with the
2 healthcare provider's claim for payment under this section, the claim is not
3 paid if the payor remits payment of the claim to the enrollee rather than to
4 the healthcare provider.
5 (B) Notwithstanding the incorrect payment of a claim to an
6 enrollee, a payor shall remain liable for remitting payment of the claim to
7 the healthcare provider under the assignment of benefits.
8 (2) If an assignment of benefits has been executed but the payor
9 remits payment of the claim to the enrollee, then the payor shall remit
10 payment of the claim to the healthcare provider under the assignment of
11 benefits within ten (10) days of receiving notice of the incorrect payment
12 from the healthcare provider.
13 (e) For dental-only plans, an enrollee shall provide annual consent of
14 an assignment of benefits to the healthcare provider and the healthcare
15 insurer or payor.
16 (f) For dental-only plans, before providing healthcare services to an
17 enrollee, a healthcare provider shall provide a notice or statement to the
18 enrollee informing the enrollee:
19 (1) The healthcare provider is not a participating provider;
20 (2) The healthcare provider may charge the enrollee for
21 noncovered healthcare services;
22 (3) The healthcare provider may charge the enrollee the balance
23 bill for covered healthcare services;
24 (4) An estimate of the cost of healthcare services that the
25 healthcare provider will provide the enrollee; and
26 (5) Any terms of payment that apply, including without
27 limitation interest that the healthcare provider charges.
28
29 SECTION 3. Arkansas Code § 23-99-1305 is amended to read as follows:
30 23-99-1305. Rules.
31 (a) The Insurance Commissioner shall promulgate rules necessary to
32 ensure compliance with this subchapter.
33 (b)(1) When adopting the initial rules to ensure compliance with this
34 subchapter, the final rule shall be filed with the Secretary of State for
35 adoption under § 25-15-204(f):
36 (A) On or before March 1, 2020; or
3 3/30/2023 2:07:38 PM ANS402
 SB548
1 (B) If approval under § 10-3-309 has not occurred by March
2 1, 2020, as soon as practicable after approval under § 10-3-309.
3 (2) The commissioner shall file the proposed rule with the
4 Legislative Council under § 10-3-309(c) sufficiently in advance of March 1,
5 2020, so that the Legislative Council may consider the rule for approval
6 before March 1, 2020.
7
8 SECTION 4. DO NOT CODIFY. EFFECTIVE DATE. This act is effective on
9 and after January 1, 2024.
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
4 3/30/2023 2:07:38 PM ANS402


Statutes affected:
SB 548: 23-99-1301(3)