STATE BUDGET

The state operates on a biennial budget cycle, with the fiscal year beginning July 1.  State agencies submit their budget requests to the Governor in July, and the Governor submits a proposed budget to the state legislature in November.  The state legislature adopts a budget between January and April. The budget must be passed by a three-fourths majority.  Although the Governor is required to submit a balanced budget, the legislature is not required to pass a balanced budget.

STATE LEGISLATURE

Arkansas has 35 state Senators who are limited to two four-year terms, and 100 members of the House of Representatives, limited to three two-year terms. Legislative sessions last for 60 days.  Bills do not carry over from year to year.

KEY RESOURCES

• State General Assembly
• Arkansas Attorney General
• Governor of Arkansas
• Arkansas All-Payer Claims Database
• Information on Healthcare Policy in Arkansas

2025 LEGISLATIVE SUMMARY

Arkansas passed HB1426 which expands the definition of “healthcare insurer” to include third-party administrators and other entities acting on behalf of self-insured health benefit plans. The bill also bans all-product clauses, and prevents enforcement of any clauses with the same effect. Additionally, the bill modifies rules around leasing or sharing healthcare contracts and provider networks to require more transparency and to give healthcare providers the ability to decline participation in these arrangements. The state also passed SB527, which increased insurers’ medical loss ratio by five percentage points (meaning insurers have to spend more of their income on medical care), introduced provisions for tracking and obtaining pharmacy rebates from pharmaceutical companies with quarterly reporting requirements, and expanded work requirements for state health program participants. Finally, the state also enacted SB139 which prohibits noncompete agreements for medical professionals.