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 ensures that a larger portion of premium income is 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 extending the expiration date of the subchapter from December 31, 2026, to December 31, 2031, and modifying the reporting requirements for the Department of Human Services to include quarterly reports that reflect the advisory panel's recommendations. The bill also updates the requirements for insurers regarding insurance premium tax reports, mandating that they include amounts paid for cost-sharing by the Department of Human Services in their annual reports. These changes aim to enhance transparency in financial interactions between the state and health insurers while promoting better health outcomes and economic independence for program participants.

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)