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Senate Insurance & Commerce committee approves bill limiting false DME advertising and adds physician-safety language
Summary
The Senate Insurance & Commerce committee concurred in a House amendment to a bill and passed legislation from the attorney general's office that bars durable medical equipment (DME) companies from advertising that Medicaid or Medicare will cover an item when coverage requires a provider's prescription; the bill also allows consumers to return items bought after relying on such ads.
The Senate Insurance & Commerce committee on an oversight motion adopted an amendment and approved a bill aimed at stopping false advertising by durable medical equipment (DME) companies and protecting vulnerable patients.
Committee members first adopted a concurrent amendment to Senate Bill 592 that expands grounds for an insurer to terminate a physician. David Roten of the Arkansas Medical Society told the committee the House had amended the language so a physician could be disqualified not only for "violat[ing] the standard of care" but also for actions that "have done something that could jeopardize the safety of a patient." Senator Chesterfield moved to adopt the amendment; Senator Teague seconded, and the amendment passed by voice vote.
The committee then concurred in the House amendment and sent the bill to the Senate floor for consideration. Representative Gonzales, who presented the bill as originating in the attorney general's office, said the measure is intended to "keep our most vulnerable populations from getting messed over by bad DME companies." The bill bars companies from advertising that a device will be paid for by Medicaid, Medicare or another payer when that claim lacks the required prescription, recommendation, or prior authorization from a provider.
Sean Johnson, Senior Assistant Attorney General, told the committee the statute would prohibit statements that an insurer or program "will cover" a DME item when coverage is not guaranteed, and would authorize a consumer to return a product they bought after relying on the advertisement. He said advertisers' legal counsel would determine whether state-specific disclaimers would be needed for national television ads that run in Arkansas.
With no proponents or opponents appearing, Senator Chesterfield moved to pass the bill; Senator Bledsoe seconded, and the committee approved it by voice vote. Committee members discussed who would carry the bill on the Senate floor and arranged for Senator Chesterfield to pick it up, with others offering support.
The committee also noted a procedural action earlier in the meeting: House Bill 1958 was placed on the deferred list. The committee adjourned after thanking staff and members for their work.
The bill now goes to the full Senate for floor consideration; the committee record shows voice votes on the amendment and final passage and does not record a roll-call tally in committee.
