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Senate committee clarifies insurers must cover temporarily converted ambulatory surgical centers
Summary
The Senate Insurance & Commerce Committee approved a bill clarifying insurers must honor contracts for ambulatory surgical centers that converted to temporary hospitals during public‑health emergencies and grants the Insurance Department enforcement authority and retroactive application to two facilities that stood up in 2021.
Little Rock — The Senate Insurance and Commerce Committee approved a bill to clarify that private health insurers must honor contracts when ambulatory surgical centers (ASCs) convert to temporary hospitals during a public‑health emergency.
Sen. Missy Irvin (R) described the bill as corrective: a 2021 law allowed ASCs to operate as temporary hospitals in an emergency, and two Arkansas ASCs did so, but one insurer disputed whether the statute required the insurer to provide facility contracts and reimbursements. The bill makes explicit that insurers must provide those contracts and clarifies a date window so the two ASCs that converted in 2021 receive the coverage the legislature intended.
Jason Hendren of (Hall/Howe/"Holbeau") Smith (presenter) and others spoke for the bill. Sponsors said the governor’s executive order and federal approvals from Medicare and Medicaid had opened the path for ASC conversions, but some insurers had declined to honor the statute. “This bill makes it clear that they have no choice,” Irvin said.
Committee members asked about fiscal impact and scope. Sen. McKee asked whether the bill had state fiscal impact; presenters replied it should not, because the change clarifies private insurers’ obligations. Sen. Boyden restated the sponsors’ position in committee: the General Assembly acted to address a market need, insurers refused to comply, and the bill ensures compliance.
The committee recorded a motion to pass, moved by Sen. Irvin and seconded by Sen. Boyd, followed by a voice vote in which members replied “aye.” The chair announced the bill passed.
Why it matters: The amendment is intended to ensure that ASCs that converted to temporary hospitals during declared emergencies receive the insurance contracts and reimbursements the legislature and federal programs authorized, and it gives the Arkansas Insurance Department clearer authority to enforce that outcome.
