Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to present law.
                                           Act 899 of the Regular Session
 State of Arkansas
 93rd General Assembly                        A Bill
 Regular Session, 2021                                                             SENATE BILL 621
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 By: Senator Hester
 By: Representative Gonzales
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                                   For An Act To Be Entitled
                AN ACT TO REQUIRE THE ARKANSAS MEDICAID PROGRAM AND
                THE DEPARTMENT OF HUMAN SERVICES TO HAVE ALL CONSENT
                DECREES RECONSIDERED; AND FOR OTHER PURPOSES.
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                                               Subtitle
                         TO REQUIRE THE ARKANSAS MEDICAID PROGRAM
                         AND THE DEPARTMENT OF HUMAN SERVICES TO
                         HAVE ALL CONSENT DECREES RECONSIDERED.
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 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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        SECTION 1.        DO NOT CODIFY.      Reconsideration of consent decrees with the
 Arkansas Medicaid Program.
        (a)    The General Assembly finds that:
                (1)      The Arkansas Medicaid Program and the Department of Human
 Services have entered into several consent decrees and have been ordered by
 several court decisions regarding reimbursement rates for Medicaid providers,
 including without limitation:
                         (A)   Easley, et al., v. Arkansas Department of Human
 Services, 645 F. Supp. 1535 (1986);
                         (B)   Ellis v. Arkansas Department of Human Services, 859
 F.2d 52 (1988);
                         (C)   Arkansas Medical Society, Inc. v. Reynolds, 6 F.3d 519
 (1993), which was amended several times regarding physical therapy, private
 duty nursing, physicians, dental services, home health services, physician
 and podiatry services, physical, speech, and occupational therapy, private
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                                                                                SB621
 duty nursing services, and primary care services;
                     (D)   Dalton v. Little Rock Family Planning Services, 516
 U.S. 474 (1996);
                     (E)   Wal-Mart Stores, Inc. v. Knickrehm, 101 F. Supp.2d 749
 (2000);
                     (F)   Pediatric Specialty Care, Inc. v. Arkansas Department
 of Human Services, 293 F.3d 472 (2002);
                     (G)   Pediatric Specialty Care, Inc. v. Arkansas Department
 of Human Services, 364 F.3d 925 (2004);
                     (H)   Kapable Kids Learning Center v. Arkansas Department of
 Human Services, 420 F.Supp.2d 956 (2005);
                     (I)   Pediatric Specialty Care, Inc. v. Arkansas Department
 of Human Services, 444 F.3d 991 (2006);
                     (J)   Arkansas Department of Health v. Ahlborn, 547 U.S. 268
 (2006);
                     (K)   United States v. State of Arkansas, 794 F.Supp.2d 935
 (2011);
                     (L)   Jackson v. Selig, 2013 WL 1007346 (2013);
                     (M)   Penny v. Arkansas Department of Human Services, 2013
 WL 1164857 (2013); and
                     (N)   Jackson v. Selig, 2013 WL 1934008 (2013);
            (2)     However, the United States Eight Circuit Court has held that
 consent decrees must "be modified if ... one (1) or more of the obligations
 placed upon the parties has become impermissible under federal law";
            (3)(A)     In 2015, the United States Supreme Court held in
 Armstrong v. Exceptional Child Center, Inc., 135 S. Ct. 1378, that the
 Supremacy Clause of the United States Constitution does not confer a private
 right of action and that Medicaid providers cannot sue for injunctive relief
 requiring compliance with 42 U.S.C.  1396(a)(30)(A).
                     (B)   This court decision could be interpreted as nullifying
 the consent decrees entered into by the program and the department;
            (4)     Since 2015, the program and the department have not moved to
 modify or nullify the consent decrees or to be released from the consent
 decrees;
            (5)     In 2019, Governor Asa Hutchinson issued Executive Order 19-
 02 which required the program to establish a systemic approach to reviewing
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                                                                                     SB621
 Medicaid rates to providers on a regular cycle;
                  (6)   Since 2019, the program has increased rates to providers and
 is still working to evaluate more providers; and
                  (7)   The program and the department should have the consent
 decrees reconsidered by a court based on the systemic approach to reviewing
 Medicaid rates and the holding in Armstrong v. Exceptional Child Center,
 Inc., 135 S. Ct. 1378.
         (b)(1)     On or before December 1, 2021, the program and the department
 shall have the consent decrees reconsidered by a court to modify or nullify
 the consent decrees or release the program and the department from the
 consent decrees based on the systemic approach to reviewing Medicaid rates
 and the holding in Armstrong v. Exceptional Child Center, Inc., 135 S. Ct.
 1378.
                  (2)   The program and department shall report quarterly to the
 Legislative Council regarding the results of the actions required in
 subdivision (b)(1) of this section.
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                                     APPROVED: 4/25/21
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