AR HB1954

Department of Human Services shall develop a five-year program savings plan to monitor all Medicaid savings, including those from risk-based provider organizations within the Arkansas Medicaid Program.

The savings plan must measure increased care management and coordination, value-based purchasing strategies, reductions in duplicate and unnecessary healthcare services, risk assumption by provider organizations, and projected savings toward the $835,000,000 in savings requested by the Governor.

Department shall report quarterly to the Legislative Council, Bureau of Legislative Research, and Arkansas Legislative Audit beginning September 1, 2017, with initial report establishing baseline projections for measuring implementation success.

If projected savings fall below 5% of the goal during any two consecutive quarters unrelated to nonclaims-based performance, the department must develop additional reforms to achieve savings goals.

Department may present required legislative actions to the Legislative Council or Executive Subcommittee of the Legislative Council for immediate action.