This bill aims to limit the ability of healthcare insurers to recoup payments for healthcare services beyond a one-year period after the initial payment was made. It introduces a new subchapter, "Recoupment," to the Arkansas Code, which defines key terms such as "covered person," "health benefit plan," "healthcare insurer," "healthcare provider," and "recoupment." The bill stipulates that, except in cases of fraud, insurers can only exercise recoupment within 365 days of payment and must provide written notice to healthcare providers detailing the basis for the recoupment. Additionally, if a healthcare provider initiates an internal appeal regarding the recoupment, the insurer must suspend its recoupment efforts until the appeal process is exhausted.

Furthermore, the bill outlines specific conditions under which recoupment cannot be exercised, particularly when a healthcare provider has verified a patient's coverage in good faith. It mandates that insurers notify providers of any verification errors within 90 days of payment and includes requirements for documentation when recoupment is exercised, such as the amount being recouped and the reasons for it. Non-compliance with these provisions would subject healthcare insurers to penalties under the Trade Practices Act.