AR SB877

Amends Arkansas Code § 23-86-112(a) to clarify that group accident and health policies may not require hospital or medical services to be rendered by a particular hospital or person, while maintaining the insurer's option to pay directly to providers.

Adds definition of "policyholder" in Arkansas Code § 23-86-403(8) as the employer, association, state, county, or municipal agency contracting with a health maintenance organization or insurance company for a health benefit plan.

Modifies Arkansas Code § 23-86-404 to replace "health maintenance organization" with "health maintenance organization or insurance company" throughout the section governing optional health benefit plans.

Changes requirement in § 23-86-404(a)(2) from a 25% benefit level difference limit to allowing the Insurance Commissioner to optionally review and determine if the contracted provider network is adequate.

Shifts decision-making authority from mandatory requirements to discretionary options, allowing the Insurance Commissioner to "may" promulgate rules instead of "shall" require them in § 23-86-404(b)(2).