Omnibus Health Insurance Package Being Prepared

A package of perhaps 10 bills is being prepared to help Arkansas implement aspects of the controversial federal health care reform law passed by Congress last year.

The legislative package would force state law into compliance with federal rules aimed at consumer protection, while also making technical corrections to state law and expanding the authority of the state Insurance Department.

Arkansas Insurance Commissioner Jay Bradford has been scrambling to address legislator concerns and tinker with bill language to ensure the least controversial path to passage as possible.

"I’ve been saying all along that we need to let Arkansans take care of Arkansans," Bradford said in the capitol hallways on Tuesday morning.

One bill addressing the federal law has already been filed, HB 1428, which would provide a stop-gap measure to provide children-only health plans for those under the age of 19 with pre-existing conditions. The bill, sponsored by Rep. Donna Hutchinson (R-Bella Vista), passed the House Public Health Committee on Tuesday morning.

The omnibus insurance legislation Bradford is crafting would seek enabling language to allow the Insurance Department to review rates charged by companies selling health insurance in Arkansas, a requirement of the new federal law. Another mandate in the federal legislation would create state health insurance exchanges to allow consumers to compare plans and benefits.

Arkansas has received $2 million in federal money for the purposes of implementing these 2 initiatives, but more clarifying language is needed to get them fully engaged.

Other aspects of the comprehensive bill package Bradford is seeking includes:

• Causal connection – To clarify that an insurer may not rescind a policy or deny a claim on a pre-existing condition unless there was fraud involved.
• Insurance department regulation – To allow for emergency cease and desist orders in certain circumstances and insurance producer discipline for companies that abuse rules.
• Continuing education – To provide courses for insurance producers to keep up with federal and state rules and regs.
• Technical corrections – To amend state laws to comply with the new federal language, such as removing caps on reimbursement for children’s preventative care and meeting new financial reporting requirements.

Several GOP lawmakers have been focused on the new health care law and how it would impact Arkansas government. Late Tuesday, State Senator Missy Irvin (R-Mountain View) filed a bill to require state agencies to provide a cost impact on the implementation of the federal health care law.
 
SB 709 prevents the immediate enforcement of the Patient Protection and Affordable Care Act unless state departments provide detailed reports concerning what the law will cost the state per provision if implemented or if not implemented, Irvin said. 

“There is currently no long-term strategic economic plan in place to sustain the federal healthcare program,” Irvin said, noting that federal money is currently funding efforts in Arkansas. “What happens when the federal money runs out?”