The proposed bill establishes a new drug reimbursement process for healthcare providers in Arkansas, adding a subchapter to the Arkansas Code Title 23, Chapter 99. This subchapter includes definitions for key terms such as "contracting entity," "drug," "health benefit plan," "healthcare insurer," "healthcare provider," and "healthcare services." The bill mandates that contracting entities provide a reasonable administrative appeal procedure for healthcare providers to contest reimbursement rates that fall below their drug acquisition costs. This procedure must include dedicated communication channels for submitting appeals and allow providers to file appeals within 60 business days of a claim's adjudication.

If a provider's appeal is upheld, the contracting entity is required to adjust the reimbursement rate to at least 110% of the provider's drug acquisition cost and reprocess the claim accordingly. In cases where an appeal is denied, the provider must receive detailed information regarding the denial. Additionally, healthcare providers can notify contracting entities quarterly about drugs with acquisition costs below the contracted reimbursement rate, allowing for potential adjustments without the need for an appeal. This bill aims to enhance transparency and fairness in drug reimbursement practices for healthcare providers in the state.