AR HB1706

Establishes the Medicaid Provider-Led Organized Care Act to create risk-based provider organizations that deliver healthcare services to Medicaid beneficiaries with behavioral health needs or intellectual/developmental disabilities on a capitated payment basis.

Designates risk-based provider organizations as insurance companies for regulatory purposes under Arkansas law, subject to licensing by the Insurance Commissioner, but excludes them from the Arkansas Life and Health Insurance Guaranty Association Act.

Requires risk-based provider organizations to maintain at least 51% ownership by participating providers including developmental disability service providers, behavioral health providers, hospitals, physician practices, and pharmacists.

Eliminates the waiting list for the Alternative Community Services Waiver Program by dedicating at least 50% of insurance premium taxes collected from risk-based provider organizations to fund home and community-based services for individuals with intellectual and developmental disabilities.

Implements a performance measurement and incentive system through a quality incentive pool funded by premium tax revenues to reward organizations meeting specific healthcare quality and outcome measures.