Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Healthcare Policy topic
No spam. Unsubscribe anytime.
Committee approves bill to require transparency in hospital-insurer contracts
Summary
Senate Bill 480, presented by Senator Irvin with hospital witnesses, sets contract-disclosure standards and bans certain contracting clauses (most-favored-nations and broad "all products" clauses); sponsors said clarifying amendments exempt federally regulated self-insured plans.
The Senate Insurance & Commerce Committee voted to advance Senate Bill 480 after testimony from hospital executives and association counsel who said the measure would improve transparency in contracting between hospitals and insurers.
Senator David Irvin, sponsor of SB 480, said the bill seeks "clear and transparency in contracting" so hospitals and other providers can see full contracts and amendments. Alisa White, vice president and general counsel of the Arkansas Hospital Association, described the bill as establishing basic "playground rules" for contracting, including a 10-day requirement to provide complete copies of long or amended contracts and prohibitions on most-favored-nations clauses and overly broad all-products provisions.
White said added language clarifies that the bill does not force providers to refuse patients or change clinical decisions and that it does not regulate federally governed self-insured employer plans. Ryan James of the Arkansas Insurance Department told the committee that the department's prior concerns had been addressed and that the department remained neutral on the bill.
Sponsors said negotiations and three rounds of amendments produced language acceptable to insurers and hospital stakeholders. With no registered opposition on the record at the hearing, a committee member moved the bill and it passed on voice vote.
Next steps: The bill will proceed to the Senate floor for further consideration.
