ARK LEG Downcoding Health Services

Published on: Feb 28, 2025

On Feb. 25, ARK LEG enacted bill to simplify health contracting rules.

  • ARK LEG issued notice that bill HB 1287 on contracting simplification, enacted into law.
  • Amends Healthcare contracting simplification act related to the downcoding of claims.
  • Bill amends Arkansas code ARK INS 23-3-99-12-23-99-1202 and adds section 1211.
  • Bill Provisions
  • Defines downcode as the process of changing claims to lower-cost healthcare service than what was in original claim that provider submitted or billed to contracting entity.
  • Also, requires contracting entity that downsides a claim submitted by healthcare provider, to provide notice of the downcoding, within 30 days of claims processing.
  • Legislative History
  • On Jan. 28, 2025, bill introduced in House; on Feb. 11, 2025, bill passed in House.
  • On Feb. 11, 2025, bill introduced in Senate; on Feb. 19, 2025, bill passed in Senate.
  • On Feb. 19, 2025, bill returned to House; on Feb. 20, 2025, bill sent to governor.
  • On Feb. 25, 2025, bill was approved by the governor and then assigned Act 136.
  • Effectiveness
  • Act effective 91 days after legislature adjourned sine die (May 5), so Aug. 4, 2025.
Regulators
ARK LEG
Entity Types
Ins
Reference
Act 136, PR, Bill HB1285, 2/25/2025; Citation: ARK INS 23-3-99-12-23-99-1202;
Functions
Claims/Accelerated Benefits; Compliance; Financial; Legal; Operations; Product Administration
Countries
United States of America
Category
State
N/A
Products
Insurance; Insurance-Health
Rule Type
Final
Regions
Am
Rule Date
Feb 25, 2025
Effective Date
Aug 4, 2025
Rule ID
244969
Linked to
N/A
Reg. Last Update
Feb 25, 2025
Report Section
US Insurance