Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 86 - GROUP AND BLANKET ACCIDENT AND HEALTH INSURANCE (§§ 23-86-101 — 23-86-512) › Subchapter 5 - SMALL EMPLOYER HEALTH INSURANCE PURCHASING GROUP ACT OF 2001 (§§ 23-86-501 — 23-86-512) › Section 23-86-503 - Health insurance purchasing group organization requirements

(a)
Each health insurance purchasing group shall be a nonprofit corporation operated under the direction of a board of directors that is composed of five (5) representatives of eligible employers.
(b)
(1)
(A)
Each health insurance purchasing group shall be composed of at least five hundred (500) eligible employees from one (1) or more eligible employers.
(B)
However, a health insurance purchasing group shall have twelve (12) months from the time of formation to reach the level of five hundred (500) eligible employees.
(C)
At the time of formation, the health insurance purchasing group shall have at least one hundred (100) eligible employees.
(2)
(A)
Upon the failure of a health insurance purchasing group to maintain the required size restrictions described in this subsection, the health insurance purchasing group shall notify the Insurance Commissioner in writing that the health insurance purchasing group does not comply with the size requirements under subdivision (b)(1) of this section.
(B)
The health insurance purchasing group may then continue to operate the health benefits plan for its members but shall comply within sixty (60) calendar days with the size requirements of this section or within a time period as determined by the commissioner.
(C)
Upon the failure of the health insurance purchasing group to maintain size requirements as required under this section, after sixty (60) calendar days or after the time period determined by the commissioner, the health insurance purchasing group may then be terminated following notice and hearing before the commissioner.
(c)
(1)
(A)
Subject to the provisions of this subchapter, a health insurance purchasing group shall permit any eligible employer that meets the membership requirements of the health insurance purchasing group to contract with the health insurance purchasing group for the purchase of a health benefits plan for its eligible employees and dependents of those eligible employees.
(B)
The health insurance purchasing group may not vary conditions of eligibility, including premium rates and membership fees, for any employer meeting the membership requirements of the health insurance purchasing group, nor may it vary conditions of eligibility for any employee to qualify for a health insurance purchasing group health benefits plan offered to the eligible employer by the health insurance purchasing group.
(2)
(A)
A contract shall provide that the purchaser agrees not to obtain or sponsor a health benefits plan on behalf of any eligible employees and their dependents other than through the health insurance purchasing group.
(B)
Subdivision (c)(2)(A) of this section shall not be construed to apply to an eligible individual who resides in an area for which no coverage is offered by a health insurance purchasing group health carrier.
(3)
(A)
(i)
Under rules established to carry out this subchapter with respect to an eligible employer that has a purchaser contract with a health insurance purchasing group, individuals who are eligible employees of an eligible employer may enroll for a health benefits plan offered by a health insurance purchasing group health carrier.
(ii)
This may include coverage for dependents of the enrolling employees if this coverage is offered.
(B)
The employees may enroll for health benefits provided through their employer's contract with a health insurance purchasing group.
(4)
A health insurance purchasing group shall not deny enrollment as a member to an individual who is an eligible employee or dependent of an employee qualified to be enrolled based on health status-related factors except as may be permitted by law.
(5)
In the case of members enrolled in a health benefits plan offered by a health insurance purchasing group health carrier, the health insurance purchasing group shall provide for an annual open enrollment period of thirty (30) calendar days during which the members may change the coverage option in which the members are enrolled.
(6)
(A)
Nothing in this subsection shall preclude a health insurance purchasing group from establishing rules of employee eligibility for enrollment and reenrollment of members during the annual open enrollment period under subdivision (c)(5) of this section.
(B)
The rules shall be applied consistently to all purchasers and members within the health insurance purchasing group and shall not be based in any manner on health status-related factors and shall not conflict with sections of this subchapter.
(d)
(1)
Each health insurance purchasing group shall annually file with the commissioner a description of its:
(A)
Plan of operation, including each of the products it intends to sell;
(B)
Marketing methods and materials; and
(C)
Membership and disclosure requirements or other information as required by the commissioner through rules.
(2)
The plan of operation filed with the commissioner by the health insurance purchasing group pursuant to this subsection shall be deemed approved sixty (60) calendar days after the date of filing unless additional time is requested by the commissioner to review the plan.
(e)
Each health insurance purchasing group shall be considered a large group for purposes of application of the Arkansas Insurance Code to the activities and health benefit plans of the health insurance purchasing group unless stated otherwise in this subchapter.
(f)
No purchaser, health insurance purchasing group, health maintenance organization, or health insurer providing coverage to a health insurance purchasing group shall be subject to any provisions in §
26-57-601
et seq. for insurance premiums collected for health benefit plans of health insurance purchasing groups.
Amended by Act 2019, No. 315,§ 2752, eff. 7/24/2019.
Acts 2001, No. 925, § 3; 2003, No. 1358, § 1.