AR HB1256

Creates the Arkansas Medical Assistance Fraud Prevention Program within the Department of Human Services to address Medicaid fraud, waste, and abuse through smart card technology and multifactor authentication.

Establishes a pilot program to run 3-6 months in seven selected counties beginning no later than January 1, 2014, with mandatory participation by all providers and recipients in those counties.

Implements smart cards with real-time card readers at provider locations for recipient authentication at point of transaction, including photo ID verification and prescription history tracking (photo ID not required for ARKids First A and B recipients).

Requires the pilot program to achieve a minimum 3% reduction in average monthly cost per recipient to be considered successful before statewide rollout.

Mandates monthly reports during pilot program development and quarterly reports after implementation to the Governor and legislative committees, including data on cards issued, program costs, fraud prevention outcomes, and provider satisfaction.