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House committee advances HB 1930 to set minimum hospital reimbursement levels amid insurer, employer and hospital disagreement
Summary
The House Insurance & Commerce Committee voted to advance HB 1930, a bill that would set minimum commercial reimbursement rates for health-care providers in Arkansas with a phased approach starting at a 45% threshold. Insurers and business groups warned it could raise premiums; hospitals said higher reimbursements are needed to avoid closures.
The House Insurance & Commerce Committee advanced HB 1930 after several hours of testimony from insurers, employers, and hospital executives over how the bill would set minimum reimbursement levels for health-care providers.
Insurer testimony: Representatives of major insurers urged caution. "Last year, we had 125 small businesses drop coverage," said David Mans, Arkansas Blue Cross, explaining why his company was testifying. Mans told the committee Blue Cross analyzed the bill's language and, under one interpretation, estimated significant premium increases for some groups. He said his actuaries would need more time to model the bill as amended to 45% before projecting premium impacts. Alicia Barkmeier also appeared with Arkansas Blue Cross during questioning.
Randy Zook, president of the Arkansas State Chamber of Commerce, told the committee HB 1930 "proposes mandating minimum reimbursement levels for health care providers in Arkansas" and warned the measure could shift costs to private employers and employees. Zook repeated an insurer-provided estimate that private…
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