Arkansas HCR 1007: TO ENCOURAGE THE UNITED STATES CONGRESS TO REEVALUATE THE MEDICARE PHYSICIAN FEE SCHEDULE LOCALITY STRUCTURE AND ENSURE ACCURATE GEOGRAPHIC PRACTICE COST INDICES FOR THE METROPOLITAN STATISTICAL AREAS OF THIS STATE.

Bill Text

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State of Arkansas 1
95th General Assembly 2
Regular Session, 2025 HCR 1007 3
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By: Representatives Painter, Vaught, McAlindon, Achor, C. Cooper, Lundstrum, K. Moore 5
By: Senator C. Penzo 6
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HOUSE CONCURRENT RESOLUTION 8
TO ENCOURAGE THE UNITED STATES CONGRESS TO REEVALUATE 9
THE MEDICARE PHYSICIAN FEE SCHEDULE LOCALITY 10
STRUCTURE AND ENSURE ACCURATE GEOGRAPHIC PRACTICE 11
COST INDICES FOR THE METROPOLITAN STATISTICAL AREAS 12
OF THIS STATE. 13
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Subtitle 16
TO ENCOURAGE THE UNITED STATES CONGRESS 17
TO REEVALUATE THE MEDICARE PHYSICIAN FEE 18
SCHEDULE LOCALITY STRUCTURE AND ENSURE 19
ACCURATE GEOGRAPHIC PRACTICE COST 20
INDICES FOR THE METROPOLITAN STATISTICAL 21
AREAS OF THIS STATE. 22
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WHEREAS, the State of Arkansas plays a vital role in the national 24
economy, serving as the headquarters for globally influential corporations 25
such as Walmart Inc., Tyson Foods, and J.B. Hunt Transport Services, Inc., as 26
well having a thriving aerospace, defense, and steel manufacturing industry; 27
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WHEREAS, this state's diverse economic landscape includes major 30
metropolitan regions that differ significantly in cost structure from rural 31
areas, particularly within the Metropolitan Statistical Areas of 32
Fayetteville-Springdale-Rogers, AR (CBSA 22220), and Little Rock-North Little 33
Rock-Conway, AR (CBSA 30780), as delineated by the United States Office of 34
Management and Budget; and 35
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WHEREAS, the Medicare Physician Fee Schedule locality structure 1
currently designates all regions of this state under Locality 13, grouping 2
both urban and rural areas into a single reimbursement category despite clear 3
economic and cost-of-practice differences; and 4
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WHEREAS, the Geographic Practice Cost Indices assigned to this state do 6
not accurately reflect the actual costs incurred by medical practices in its 7
metropolitan areas, placing undue financial strain on healthcare providers, 8
and reducing access to essential medical services for residents; and 9
WHEREAS, Arkansas ranks as the third-worst state in Medicare locality 10
reimbursement, trailing only Mississippi and the "Rest of Missouri" 11
localities, further disadvantaging healthcare providers and limiting patient 12
access to care; and 13
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WHEREAS, this state's urban centers experience significantly higher 15
commercial lease rates, labor costs, and other operational expenses that 16
necessitate a reevaluation of Medicare Physician Fee Schedule localities to 17
ensure fair Medicare reimbursement and a sustainable healthcare system; and 18
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WHEREAS, carving out CBSA 22220, which is Fayetteville-Springdale-20
Rogers, AR, and CBSA 30780, which is Little Rock-North Little Rock-Conway, 21
AR, into separate locality numbers would more accurately reflect the unique 22
economic conditions of these metropolitan areas and align Arkansas with 23
national standards for Medicare locality determination; and 24
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WHEREAS, failure to correct this misalignment perpetuates inequitable 26
healthcare reimbursement policies that hinder this state's healthcare 27
providers' ability to deliver essential medical services, 28
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NOW THEREFORE, 30
BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-FIFTH GENERAL 31
ASSEMBLY OF THE STATE OF ARKANSAS, THE SENATE CONCURRING THEREIN: 32
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THAT the House of Representatives and the Senate concurring encourages 34
the United States Congress to: 35
(1) Conduct a thorough review of the current Medicare Physician 36

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Fee Schedule locality structure as applicable to this state to ensure 1
reimbursement rates align with actual regional cost structures; 2
(2) Examine and reassess the Geographic Practice Cost Indices 3
assigned to this state's localities to guarantee that the Geographic Practice 4
Cost Indices accurately reflect the expenses incurred by healthcare providers 5
in different regions of the state; 6
(3) Carve out CBSA 22220, which is Fayetteville-Springdale-7
Rogers, AR, and CBSA 30780, which is Little Rock-North Little Rock-Conway, 8
AR, into separate locality numbers to ensure fair reimbursement that reflects 9
the economic realities of these metropolitan areas; and 10
(4) Take swift action to correct these inaccuracies to prevent 11
further financial disadvantages for the healthcare providers of this state 12
and ensure equitable access to medical services for residents. 13
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BE IT FURTHER RESOLVED THAT upon adoption of this resolution, an 15
appropriate copy be provided by the Chief Clerk of the House of 16
Representatives to the the members of the Arkansas congressional delegation, 17
the Administrator of the Centers for Medicare & Medicaid Services, the 18
Secretary of the United States Department of Health and Human Services, and 19
the Director of the United States Office of Management and Budget. 20
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