The proposed bill seeks to improve healthcare access in Arkansas by amending laws related to hospital assessment fees and establishing new funding mechanisms. It introduces the "Graduate Medical Education Expansion Account" within the Arkansas Medicaid Program Trust Fund, which will be funded by collected moneys and is dedicated to supporting graduate medical education programs. This account will be exempt from budgetary cuts and will ensure that funds are allocated solely for the direct costs of eligible hospital providers' graduate medical education programs initiated after July 1, 2025. Additionally, the bill modifies the definition of the "Medicare Cost Report" and updates definitions concerning upper payment limits for Medicaid reimbursement.

Moreover, the bill creates a "Hospital Directed Payment Assessment" to enhance Medicaid reimbursement for hospital services, particularly in rural areas, and establishes a "Managed Care Provider Incentive Pool Account" to incentivize Medicaid providers. The assessment will be imposed on hospitals with rates determined annually, and the funds collected will be used for directed payments to hospitals and to reimburse erroneous collections. The bill also outlines a new quarterly payment structure for hospital directed payment assessments and establishes two advisory committees to provide recommendations on legislative and policy changes affecting hospitals and managed care programs. The Managed Care Provider Incentive Program will initially focus on improving maternal health and primary care access until June 30, 2030, after which it will support other initiatives approved by the advisory committees.

Statutes affected:
HB 1969: 20-77-1901(3), 20-77-1901(9), 26-57-610(b)