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House committee approves Prior Authorization Transparency bill, adds enforcement fund
Summary
The House Insurance & Commerce Committee passed legislation to clarify prior-authorization rules, create a fund for enforcement, and define what counts as prior authorization. The bill creates penalties that would feed a new enforcement fund and tightens definitions used by payers and providers.
The Arkansas House Insurance & Commerce Committee on Tuesday voted to pass House Bill 1300, the Prior Authorization Transparency Act as amended, sending the bill to the full House.
The bill clarifies which administrative processes count as “prior authorization,” creates a prior-authorization transparency fund to pay for enforcement, and authorizes civil fines that will feed that fund. Representative Lee Johnson, sponsor of the amended bill, told the committee the fund is intended to “allow AID to have a funding source for some of the enforcement around these…
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