Ark. Code Ann. § 21-5-404 (2020)

The State and Public School Life and Health Insurance Board has the following powers, functions, and duties:

1. 1. To explore various cost-containment measures and funding options for plan options offered under the State and Public School Life and Health Insurance Program for the benefit of state employees, state employee retirees, public school employees, and public school employee retirees.
   2. Beginning in the 2015 plan year, the board shall not adopt a health insurance plan option that has no deductible for participants.
   3. The board shall recommend that an active employee in a consumer-driven health insurance plan option offered under the program establish a health savings account if the active employee is eligible to establish a health savings account under federal law;
2. To promote competition among vendors and create a systematic formula for measuring competitiveness of the plan options offered under the program, quality-of-care delivery, portability, and accessibility to and affordability of health care;
3. To prepare a comprehensive analysis of the various plan options offered under the program, including cost, quality, and access differentials as well as any other comparisons of the plan options offered under the program;
4. To undertake studies and to take any appropriate action that the board determines will promote the financial soundness and overall well-being of the program;
5. To establish and set penalties as allowed under § 21-5-415;
6. 1. To develop, with the assistance of the Office of State Procurement, bid specifications and requests for proposals and to evaluate bids and proposals.
   2. The board shall allow the office to execute all other actions relating to the purchasing procedures in contracting for consultants, third-party administrators, providers, or insurance companies on behalf of the program and all plan options offered under the program;
7. To evaluate responses to requests for proposals, select contractors for all services, and approve the award of contracts resulting from bids for the program and all plan options offered under the program;
8. To perform program and plan option design, summarize plan document approval, including without limitation lifetime limitations, copayments, deductibles, and eligibility rules;
9. To promote increased access to and participation in the program and the plan options offered under the program by educating state employees, state employee retirees, public school employees, and public school employee retirees about the program and all plan options offered under the program, including the advantages and disadvantages of each available plan option;
10. 1. To direct the office to contract with qualified vendors, as defined by the board, offering the plan options under the program as prescribed by the board without regard to § 19-11-228 or other statutes requiring competitive bidding.
    2. Each contract shall be for a term of at least one (1) year but may be made automatically renewable from term to term in the absence of notice of termination by either party;
11. 1. To obtain quality-of-care information from systems, networks, hospitals, and clinical providers to inform plan option design, plan option management, and consumer decisions.
    2. The board shall:
       1. Use accepted national standards for assessment of quality-of-care information provided by systems, networks, hospitals, and clinical providers; and
       2. Be empowered to:
          1. Determine the appropriate use of quality-of-care information and scope of system, network, hospital, and clinical provider accountability;
          2. Request aggregate performance information for patients; and
          3. Publicly report conclusions of quality-of-care assessment; and
12. To appoint three (3) subcommittees of the board to study and research plan options offered under the program, formulary management, quality of care provided, and the financial impact of implementing the recommendations made to the board as follows:
    1. 1. The Benefits Subcommittee of the State and Public School Life and Health Insurance Board shall consist of:
          1. Three (3) board members;
          2. Two (2) state employees;
          3. Three (3) public school employees, at least one (1) of whom is employed by a rural school district; and
          4. One (1) retired public school employee.
       2. The Benefits Subcommittee of the State and Public School Life and Health Insurance Board shall review, evaluate, and investigate benefits, new benefit offerings, and annual insurance rates;
    2. 1. The Drug Utilization and Evaluation Subcommittee of the State and Public School Life and Health Insurance Board shall consist of:
          1. Three (3) pharmacists as follows:
             1. The Director of the Arkansas State Board of Pharmacy or his or her pharmacist designee;
             2. The Dean of the University of Arkansas for Medical Sciences College of Pharmacy or his or her pharmacist designee; and
             3. A pharmacist selected by the Arkansas Pharmacists Association;
          2. Four (4) physicians as follows:
             1. The Dean of the University of Arkansas for Medical Sciences College of Medicine or his or her physician designee;
             2. The Senior Associate Hospital Director of the University of Arkansas for Medical Sciences Medical Center or his or her physician designee;
             3. The Medical Director of the Arkansas Poison and Drug Information Center or his or her physician designee; and
             4. A physician selected by the Arkansas Medical Society;
          3. One (1) registered nurse who is the Dean of the University of Arkansas for Medical Sciences College of Nursing or his or her registered nurse designee; and
          4. 1. One (1) state employee and two (2) public school employees, appointed by the board.
             2. A member appointed under this subdivision (12)(B)(i)(d) shall have expertise in accounting, finance, auditing, or insurance.
       2. The Drug Utilization and Evaluation Subcommittee of the State and Public School Life and Health Insurance Board shall review drugs for formulary management and evaluate the financial impact of its recommendations; and
    3. 1. The Quality of Care Subcommittee of the State and Public School Life and Health Insurance Board shall consist of:
          1. Three (3) board members;
          2. Two (2) state employees;
          3. Two (2) public school employees;
          4. One (1) representative from the Arkansas Foundation for Medical Care;
          5. One (1) representative from the Arkansas Pharmacists Association;
          6. One (1) representative from the Arkansas Center for Health Improvement;
          7. One (1) representative from the Arkansas Medical Association;
          8. One (1) representative from the Arkansas Osteopathic Medical Association; and
          9. One (1) representative from the Arkansas Hospital Association.
       2. The Quality of Care Subcommittee of the State and Public School Life and Health Insurance Board may review and recommend quality performance indicators for use, recommend baseline performance goals, recommend alignment of financial incentives to improve performance, and track improvements in delivery of care.

History. Acts 1995, No. 1206, § 4; 1999, No. 1280, § 4; 2003, No. 1446, § 2; 2005, No. 1308, § 1; 2005, No. 1937, § 1; 2007, No. 1009, § 4; 2013 (1st Ex. Sess.), No. 3, § 2; 2013 (1st Ex. Sess.), No. 6, § 2; 2014 (2nd Ex. Sess.), No. 3, §§ 2-4; 2014 (2nd Ex. Sess.) No. 6, §§ 2-4; 2015, No. 910, § 1; 2015, No. 1135, § 1; 2019, No. 910, § 6138.

A.C.R.C. Notes. Acts 2005, No. 1308, § 1 amended this section to specifically repeal the provisions of the section regarding the Fiscal Subcommittee of the State and Public School Life and Health Insurance Board.

Pursuant to § 1-2-207(b), subdivision (1)(C) is set out above as amended by Acts 2015, No. 1135, § 1. Subdivision (1)(C) was also amended by Acts 2015, No. 910, § 1, to read as follows: “(C) The board shall require an active employee in a consumer-driven health insurance plan option offered under the program to establish a health savings account if the active employee is eligible to establish a health savings account under federal law.”

Publisher's Notes. The former § 21-5-404, concerning prohibited activities of committee members, was repealed by Acts 1995, No. 1206, § 9. The former section was derived from Acts 1972 (1st Ex. Sess.), No. 48, § 4; A.S.A. 1947, § 12-3104; Acts 1991, No. 867, § 3.

Amendments. The 2013 (1st Ex. Sess.) amendment by identical acts Nos. 3 and 6 substituted “functions, and duties of board” for “Functions — Duties” in the section heading; redesignated former (1) as (1)(A) and added “for plan options offered … public school employee retirees” at the end; added (1)(B); substituted “the plan options offered under the program” for “programs” in (2); rewrote (3); substituted “program” for “members’ health insurance programs” in (4); deleted “of the Department of Finance and Administration” following “Procurement” in (6)(A); in (6)(B), deleted “However” from the beginning, substituted “third-party” for “third party,” and substituted “program and all plan options offered under the program” for “programs”; substituted “the program and all plan options offered under the program” for “all health and life insurance offerings for participants” in (7); in (8), substituted “program and plan option design” for “plan design” and “without limitation” for “but not limited to”; rewrote (9); substituted “plan options under the program as” for “benefit plans” in (10)(A); inserted “option” twice in (11)(A); rewrote (11)(B); substituted “plan options offered under the program” for “health and life plan option benefits” in the introductory language of (12); inserted “of the State and Public School Life and Health Insurance Board” in the introductory language of (12)(A)(i), (12)(A)(ii), (12)(B)(i), (12)(B)(ii), (12)(C)(i), and (12)(C)(ii); substituted “public school” for “school district” in (12)(A)(i) (c) and (12)(C)(i) (c) ; substituted “Senior Associate Hospital Director” for “Associate Medical Director” in (12)(B)(i) (b) (2) ; and substituted “has” for “shall have” in (12)(B)(i) (d)

The 2014 (2nd Ex. Sess.) amendment by identical acts Nos. 3 and 6 added (1)(C); in (12)(A)(i) (c) , substituted “Three (3)” for “Two (2)” and added “at least one (1) of whom is employed by a rural school district; and” to the end; added (12)(A)(i) (d) ; redesignated former (12)(B)(i) (d) as (12)(B)(i) (d)(1) and (2) ; substituted “two (2) public school employees” for “one (1) public school employee” in (12)(A)(i) (d)(1) ; and substituted “A member appointed under this subdivision (12)(B)(i) (d) shall have” for “each of whom has” in (12)(B)(i) (d)(2)

The 2015 amendment by No. 910, in (1)(C), substituted “an active employee” for “a participant” and added “if the active employee is eligible to establish a health savings account under federal law” at the end.

The 2015 amendment by No. 1135, in (1)(C), substituted “recommend that an active employee” for “require a participant” and added “if the active employee is eligible to establish a health savings account under federal law”.

The 2019 amendment deleted “Executive” preceding “Director” in (12)(B)(i) (a)(1)