Committee bars insurers from requiring payment to providers via gift or virtual cards

Senator Irvin presented House Bill 1125 and asked the committee to adopt an amendment that added him as a cosponsor; the committee adopted that amendment by voice vote. Irvin said the bill is straightforward: it would prohibit a health maintenance organization or its contractor from requiring a participating provider to accept payment in the form of a gift card, credit card, or virtual credit card for health‑care services.

Irvin told the committee the Arkansas Insurance Department did not realize the practice occurred until Representative Evans brought it to their attention; he said fees attached to gift or prepaid cards can reduce the effective reimbursement to providers and impair the providers' ability to cover payroll and overhead.

Ryan James of the Arkansas Insurance Department told the committee the department had not been aware of the practice until Representative Evans reported it, and described a situation where a dentist was effectively not given an option to accept other payment forms. James said the bill would prevent a provider from being required to accept a prepaid or virtual card as payment, although accepting such payment by agreement would remain permissible.

Mike Anderson of Arkansas Blue Cross Blue Shield told the committee he was not necessarily opposed to the bill’s substance but objected to the amendment adoption process because he could not find or hear the amendment text; the chair clarified the amendment simply added a cosponsor. Senator Teague moved to pass the bill, Senator English seconded, and the committee passed HB1125 by voice vote.

Next steps: HB1125 will be reported out of committee and proceed to the full Senate for further consideration.