AR HB1969

Creates a new Hospital Directed Payment Assessment on hospitals to fund Medicaid managed care reimbursements at the highest rate permitted by federal law, effective January 1, 2026, with assessment rates determined annually based on the managed care gap and capped to comply with federal thresholds under 42 C.F.R. § 433.68(f)(3)(i)

Establishes the Graduate Medical Education Expansion Account and Program to fund direct costs of graduate medical education for residency and fellowship positions added on or after July 1, 2025, funded by 10% of certain Medicaid-related insurance premium taxes

Creates the Hospital Directed Payment Assessment Account, Managed Care Pass-Through Payment Pool Account, and Managed Care Provider Incentive Pool Account within the Arkansas Medicaid Program Trust Fund, with funds protected from budgetary cuts and restricted from supplanting existing Medicaid funding

Establishes two advisory committees: the Medicaid Sustainability Advisory Committee (10 members) to advise on payment policies and the Medicaid Quality Advisory Committee (9 members) to recommend quality improvement initiatives, with provider incentive programs dedicated to maternal health and primary care access through June 30, 2030

Directs 50% of Medicaid-related insurance premium taxes to the Managed Care Provider Incentive Pool Account, 10% to Graduate Medical Education Expansion, and 40% to General Revenue, with key provisions taking effect upon transition of fee-for-service populations to Medicaid managed care