🏥 "Hospitals or Insurance Companies?" — Bill to Raise Insurance Reimbursement Rates Fails in Arkansas House

Thursday, April 11 — Arkansas State Capitol

With many rural hospitals on life support, Rep. Jeff Wardlaw (R-Hermitage) pushed hard for House Bill 1930, which would have forced private insurers to increase how much they pay hospitals for care. But after 30 minutes of debate, the bill fell short — 44 to 45 — and is now considered dead for the session. ⚰️

💸 What the Bill Would Have Done:

• Set minimum reimbursement rates for commercial insurers by averaging what hospitals get paid in six neighboring states (MS, TN, LA, TX, OK, MO)
  
  
• Phased in over five years:
  
  
  • 45% of the 6-state avg in 2026
    
    
  • Up to 100% by 2030
    
    
• Exempted state employee insurance plans
  
  
• Aimed to help rural hospitals that say low commercial rates have pushed them to the brink
  
  

🧾 The House Vote:

• ❌ Failed: 44–45
  
  
• 🟡 4 voted Present
  
  
• 🔇 7 Did not vote
  
  
• Speaker Brian Evans (R-Cabot): “That bill is dead for this session.”
  
  

🔥 The Debate on the Floor:

Rep. Wardlaw didn’t mince words:

“You can decide whether you want to support your community, your hospital, or if you want to support Blue Cross Blue Shield’s bottom line.” 💥

Hospitals' Side:

• Wardlaw cited similar insurance premiums between Arkansas and neighboring states, but lower payouts to Arkansas hospitals
  
  
• 🏥 50% of rural hospitals in Arkansas are at risk of closure, according to a 2025 Chartis report
  
  
• McGehee Hospital CEO Terry Amstutz: “I take what they give me.” Small hospitals can’t negotiate fair rates.
  
  

Insurance Side:

• Critics warned of higher premiums for businesses and employees
  
  
• Rep. David Ray (R-Maumelle):
  
  

“Now is not the time to saddle Arkansans with higher insurance rates.”

Arkansas Blue Cross estimated premium hikes of $1,200–$1,800 per member per year under HB1930. Rep. Ray also criticized that state plans were exempt, leaving the private sector to absorb all new costs:

“The government sector is going to get off scot-free.”

🧮 RAND Report Sparks the Push:

HB1930 leaned on a RAND Corporation study that found:

• Arkansas hospitals are reimbursed 170% of Medicare rates
  
  
• National average is 254%
  
  
• Arkansas ranked lowest in the country
  
  

Blue Cross & Blue Shield’s response?

“The study is flawed — it’s an apples-to-oranges comparison.”

🎤 Post-Vote Reaction:

Wardlaw wasn’t surprised by the loss — but he was blunt:

“The insurance lobby is really strong...
These people are going to have to go back and run for re-election — and they voted against their hospitals.”

🔍 What’s Next:

• HB1930 is expected to go to interim study for a deeper dive during the off-season
  
  

No rescue plan for struggling hospitals is currently on the table