This bill aims to limit the ability of healthcare insurers to recoup payments for healthcare services by establishing a one-year timeframe for such actions. Specifically, it prohibits healthcare insurers from exercising recoupment more than 365 days after a payment has been made, except in cases of fraud committed by the healthcare provider. The bill introduces a new subchapter to the Arkansas Code, which includes definitions for key terms such as "covered person," "health benefit plan," "healthcare insurer," and "recoupment." It also outlines the requirements for insurers when they initiate recoupment, including providing written notice to healthcare providers detailing the basis for the recoupment and any rights to appeal.

Additionally, the bill stipulates that healthcare insurers must notify providers of any verification errors within 90 days of payment and cannot recoup payments if the provider acted in good faith based on the insurer's verification of coverage. The legislation also mandates that insurers provide specific documentation when exercising recoupment, including the amount, patient details, and reasons for the recoupment. Failure to comply with these provisions would subject healthcare insurers to penalties under the Trade Practices Act.