The proposed bill seeks to improve healthcare access in Arkansas by amending existing 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 designed to support graduate medical education programs, specifically funding eligible hospital providers for new residency and fellowship positions starting July 1, 2025. The bill also modifies the definition of the "Medicare Cost Report" and updates definitions related to upper payment limits for Medicaid reimbursement. Additionally, it creates a "Hospital Directed Payment Assessment" to ensure adequate reimbursement for hospitals serving Medicaid patients, with collected funds designated exclusively for hospital payments and not intended to replace general revenues.

Furthermore, the bill establishes a framework for transitioning Medicaid services from fee-for-service to managed care programs, effective January 1, 2026. It creates the "Managed Care Provider Incentive Pool Account" within the Arkansas Medicaid Program Trust Fund, which will retain account balances for incentive payments to Medicaid providers aimed at improving access and quality of care. The bill mandates the formation of two advisory committees to provide recommendations on legislative and policy changes affecting hospitals and managed care programs. It also outlines the payment structure for hospital directed payment assessments, including penalties for late payments, and specifies conditions under which these assessments will cease, ensuring that hospitals receive full payments for services rendered.

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