Arkansas mandates Medicaid provider enrollment for community services by 2025

On April 8, 2025, Arkansas legislators introduced Senate Bill 34, a significant piece of legislation aimed at enhancing the delivery of Medicaid-funded services for individuals with disabilities. The bill mandates that licensed providers involved in delivering Medicaid-reimbursable services must enroll with the Arkansas Medicaid Program and bill it directly for all covered services. This requirement is designed to maximize the use of available Medicaid funding, particularly through the Provider-Led Arkansas Shared Savings Entity (PASSE) model.

Key provisions of SB34 include a stipulation that licensed private community providers must screen individuals for Medicaid eligibility within thirty days of service initiation. Additionally, these providers are required to meet performance standards set by the Department of Human Services' Division of Developmental Disabilities Services. They must also maintain sound financial management systems and provide statistical and financial data to the department. The bill emphasizes the establishment of community support programs to ensure coordinated care and individualized services for persons with disabilities.

Notably, the bill includes a provision allowing for the extension of emergency services while efforts are made to secure Medicaid eligibility. This aspect has sparked discussions among stakeholders regarding the balance between immediate care and the administrative processes involved in Medicaid enrollment.

The bill is set to be effective from July 1, 2024, through June 30, 2025, and aims to address the pressing issue of service accessibility for individuals with disabilities in Arkansas. The elimination of the autism waiver services waiting list is also highlighted as a critical component of the legislation, reflecting a commitment to reducing barriers to necessary care.

As SB34 progresses through the legislative process, it has garnered attention for its potential economic and social implications. Advocates argue that the bill could lead to improved service delivery and better health outcomes for individuals with disabilities, while critics express concerns about the administrative burden it may place on providers. The ongoing debates surrounding the bill will likely shape its final form and impact on the state's Medicaid system.