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Arkansas General Assembly· HB 1622Notification that HB1622 is now Act 635

An act TO AMEND THE MEDICAID FAIRNESS ACT, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas      As Engrossed: H3/17/25
2 95th General Assembly
                               A Bill

3 Regular Session, 2025                                          HOUSE BILL 1622

4

5 By: Representatives Gramlich, L. Johnson

6 By: Senator J. Boyd

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8                        For An Act To Be Entitled

9            AN ACT TO AMEND THE MEDICAID FAIRNESS ACT; TO MODIFY

10           THE DEFINITION OF "ADVERSE DECISION" UNDER THE

11           MEDICAID FAIRNESS ACT; TO PROVIDE FOR ADMINISTRATIVE

12           RECONSIDERATION UNDER THE MEDICAID FAIRNESS ACT; AND

13           FOR OTHER PURPOSES.

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15

16                                          Subtitle

17                       TO AMEND THE MEDICAID FAIRNESS ACT; TO

18                       MODIFY THE DEFINITION OF "ADVERSE

19                       DECISION" UNDER THE MEDICAID FAIRNESS

20                       ACT; AND TO PROVIDE FOR ADMINISTRATIVE

21                       RECONSIDERATION UNDER THE MEDICAID

22                       FAIRNESS ACT.

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24 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

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26  SECTION 1. Arkansas Code � 20-77-1702(2), concerning the definition of

27 "adverse decision" within the Medicaid Fairness Act, is amended to read as

28 follows:

29           (2)(A) "Adverse decision" means any decision by the Department

30 of Human Services or its reviewers or contractors that adversely affects a

31 Medicaid provider or recipient in regard to:

32                       (i) Receipt of and payment for Medicaid claims and

33 services, including, but not limited to, decisions as to:

34                       (a) Appropriate level of care or coding;

35                       (b) Medical necessity;

36                       (c) Prior authorization;

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    As Engrossed: H3/17/25                                                 HB1622

1                                (d) Concurrent reviews;

2                                (e) Retrospective reviews;

3                                (f) Least restrictive setting;

4                                (g) Desk audits;

5                                (h) Field audits and onsite audits; and

6                                (i) Inspections or surveys; and

7                           (ii) Payment amounts due to or from a particular

8 provider resulting from gain sharing, risk sharing, incentive payments, or

9 another reimbursement mechanism or methodology, including calculations that

10 affect or have the potential to affect payment; and

11                               (iii) Imposition of corrective action plans.

12      (B) To constitute an adverse decision, an agency decision

13 need not have a monetary penalty attached but must have or a direct monetary

14 consequence to the provider.

15      (C) "Adverse decision" does not include the design of or

16 changes to an element of a reimbursement methodology or payment system that

17 is of general applicability and implemented through the rulemaking process;

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19      SECTION 2. Arkansas Code � 20-77-1704(a) and (b), concerning the

20 allowance of a provider administrative appeal under the Medicaid Fairness

21 Act, are amended to read as follows:

22      (a) The General Assembly finds it necessary to:

23      (1) Clarify its intent that providers have the right to

24 administrative reconsideration and fair and impartial administrative appeals;

25 and

26      (2) Emphasize that this right of administrative reconsideration

27 and appeal is to be liberally construed and not limited through technical or

28 procedural arguments by the Department of Human Services.

29      (b)(1)(A) In response to an adverse decision, a provider may request

30 an administrative reconsideration with the Department of Human Services and

31 may appeal to the Office of Medicaid Provider Appeals with the Department of

32 Health on behalf of the recipient or on its own behalf, or both, regardless

33 of whether the provider is an individual or a corporation.

34      (B)(i) A provider appeal shall be governed by the Arkansas

35 Administrative Procedure Act, � 25-15-201 et seq., except as otherwise

36 provided in this subchapter.

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    As Engrossed: H3/17/25                                                  HB1622

1                           (ii) Multiple appeals by the same provider may be

2 consolidated.

3                 (C) An administrative law judge employed by the Department

4 of Health shall conduct all Medicaid provider administrative appeals of

5 adverse decisions under this subchapter.

6   (2) The provider may appear:

7                 (A) In person or through a corporate representative; or

8                 (B) With prior notice to the Department of Health, through

9 legal counsel.

10  (3)(A) A Medicaid recipient may attend any hearing related to

11 his or her care, but the Department of Health may not make his or her

12 participation a requirement for provider appeals.

13                (B) The Department of Health may compel the recipient's

14 presence via subpoena, but failure of the recipient to appear shall not

15 preclude the provider appeal.

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17                                /s/Gramlich

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