The bill amends the Arkansas Code to establish specific reimbursement rates for home- and community-based services provided by risk-based provider organizations under the Medicaid Provider-Led Organized Care Act. It modifies existing provisions to ensure that reimbursement rates are determined by mutual agreement between the risk-based provider organization and direct service providers, with the stipulation that these rates must not be less than the minimum rates established under a new section, 20-77-2709. This section mandates a rate study to be completed by October 1, 2025, which will set the minimum reimbursement rates for these services, ensuring they are adequate to cover provider costs and promote efficiency, quality of care, and equal access.

Additionally, the bill outlines the responsibilities of the Department of Human Services in developing cost factors for the rate study, which will include input from service providers. It also includes provisions for phasing in any significant rate increases over two years if the study indicates an increase greater than ten percent. The overall goal of the bill is to enhance the financial sustainability of home- and community-based services while ensuring that they remain accessible and of high quality for Medicaid beneficiaries.

Statutes affected:
HB 1942: 20-77-2706(d), 20-77-2706(e)