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Committee advances bill to require insurer compliance with assignment-of-benefits for out-of-network care
Summary
Senate Bill 512 requires insurers to honor patients' assignment-of-benefits when they seek out-of-network providers; sponsor and hospital witnesses said the change would simplify payment flows for patients and family caregivers.
The committee passed Senate Bill 512 after sponsor Senator Bledsoe and witnesses described the measure as a consumer-protection step to ensure insurers comply with assignments of benefits when an insured chooses an out-of-network provider.
Alisa White of the Arkansas Hospital Association gave first-hand context: when family members received an out-of-network check from an insurer, the logistics of routing payment to the provider complicated care coordination. SB 512 would require insurers, when presented with an assignment-of-benefits, to treat that assignment in a way that permits payment directly to the provider.
No witnesses registered opposition at the hearing and the committee approved the bill by voice vote.
Next steps: SB 512 will proceed toward floor consideration.
