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 to support graduate medical education programs for residency and fellowship positions starting July 1, 2025. This account is designed to be separate from the General Revenue Fund and protected from budgetary cuts, ensuring it supplements existing funding. Additionally, the bill creates a "Hospital Directed Payment Assessment" to maximize Medicaid reimbursement for hospital services, particularly in rural areas, with collected funds designated exclusively for hospital payments and related administrative costs.

Furthermore, the bill outlines a transition of Medicaid services from fee-for-service to managed care programs effective January 1, 2026, establishing the "Managed Care Provider Incentive Pool Account" to support incentive payments to Medicaid providers. This account will retain its balances at the end of each contract year and is exempt from budgetary cuts. The legislation also establishes two advisory committees to ensure provider input in Medicaid operations and outlines the process for directed payments through contracted entities, requiring approval from the Centers for Medicare & Medicaid Services. Overall, the bill aims to enhance the financial stability of hospitals while ensuring compliance with federal regulations and improving access and quality of care for Medicaid recipients.

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