The bill amends the Arkansas Health and Opportunity for Me Act of 2021 to improve the program's fiscal sustainability and effectiveness. Key changes include increasing the medical-loss ratio for health insurers from 80% to 85%, which mandates that a larger portion of premium income be allocated to medical care and quality improvement rather than administrative expenses. The bill also introduces provisions for the state to obtain pharmacy rebates, defined as discounts or payments from manufacturers based on prescription drug utilization, to enhance medication affordability and access for eligible individuals. Additionally, health insurers are required to seek all available pharmacy rebates, and the Department of Human Services will track these rebates to support the program's financial health.

Other significant amendments include the removal of the expiration date of December 31, 2026, extending it to December 31, 2031, and requiring the Department of Human Services to submit quarterly reports that incorporate the advisory panel's recommendations. These reports will cover progress in areas such as eligibility, enrollment, and health initiative impacts. The bill also modifies tax reporting requirements for the insurance premium tax, mandating that insurers report total direct premium income, including amounts paid for cost-sharing by the Department of Human Services. This change aims to enhance transparency and accountability in the program's financial operations.

Statutes affected:
Old version SB527 V2 - 4-7-2025 03:52 PM: 23-61-1002, 23-61-1003, 04-07-2025, 23-61-801, 20-77-2704, 20-77-2703, 23-61-1004(c), 23-61-1004(d), 23-61-1004(e), 23-61-1004(g), 23-61-1004(h), 23-61-1007(a), 23-61-1007(c), 23-61-1009, 23-61-1011(h), 26-57-603(a)
Old version SB527 Original - 3-19-2025 06:21 PM: 23-61-1002, 23-61-1003, 23-61-801, 20-77-2704, 20-77-2703, 23-61-1004(c), 23-61-1004(d), 23-61-1004(e), 23-61-1004(g), 23-61-1004(h), 23-61-1007(a), 23-61-1007(c), 23-61-1009, 23-61-1011(h), 26-57-603(a)
SB 527: 23-61-1002, 23-61-1003, 23-61-801, 20-77-2704, 20-77-2703, 23-61-1004(c), 23-61-1004(d), 23-61-1004(e), 23-61-1004(g), 23-61-1004(h), 23-61-1007(a), 23-61-1007(c), 23-61-1009, 23-61-1011(h), 26-57-603(a)
Act 774: 23-61-1002, 23-61-1003, 04-07-2025, 23-61-801, 20-77-2704, 20-77-2703, 23-61-1004(c), 23-61-1004(d), 23-61-1004(e), 23-61-1004(g), 23-61-1004(h), 23-61-1007(a), 23-61-1007(c), 23-61-1009, 23-61-1011(h), 26-57-603(a)