Marketing Activities by Managed Care Network Providers (Concerning 20 CAR pt. 707) & REPEALS: APM 905 – Social Services Block Grant Program Manual, 25 CAR pt. 32; PUB-408 – Notice of Privacy Practices, 25 CAR pt 33

Statement of Necessity Act 301 of 2025 (the Act) amends the Medicaid Provider-Led Organized Care Act to clarify marketing by direct service providers. The Act seeks to ensure that potential and actual enrollees in a risk-based provider organization have the right to know whether a direct service provider is or will be in-network and the consequences of choosing a risk-based provider organization in which that direct service provider is not participating as a network direct service provider. The Act requires the Department of Human Services (DHS) to issue marketing rules in compliance with the directives in the Act, in conjunction with direct service provider compliance with applicable provisions in the federal managed care rule on marketing activities. Rule Summary DHS issues a new marketing rule at 20 Code of Arkansas Rules part 707. The rule mirrors the directives of the Act, specifically: (a) A direct service provider shall comply with provisions in 42 C.F.R. § 438.104 as existing on January 1, 2025; (b) It is not a marketing violation for a direct service provider to inform an existing or potential Medicaid enrollee in a risk-based provider organization of its network status with a particular risk-based provider organization; (c) A direct service provider is not prohibited from responding to an individual’s questions about open enrollment or network status if the direct service provider does not attempt to influence that individual’s choice of risk-based provider organization or respond in any manner that 12 is inaccurate or misleading; and (d) A direct service provider is not required to separate communications about its network status from communications about open enrollment if the direct service provider informs the existing or potential enrollee that the enrollee has freedom of choice among risk-based provider organization and network providers.

A public hearing was held on this rule on March 25, 2026. The public comment period expired on April 12, 2026. The agency provided the following public comment summary: 13 Commenter’s Name: David Ivers, VP of External Affairs & General Counsel, Easterseals Ark COMMENT: We appreciate the work of you and your staff on this proposed rule. We believe it tracks Act 301 of 2025, except in one respect. Act 301 states that providers may inform an existing or potential enrollee of “the consequences of choosing a risk-based provider organization in which that direct service provider is not participating as a network service provider.” Ark. Code Ann. 20-77-2709(2)(2). That language is not in the proposed rule. The most significant aspect of choosing a risk-based provider organization in which your provider is not participating is that your services will not be covered. Given its significance, it seems the quoted language should be included. This is further substantiated by informal emails among other IDD providers saying the meaning of the rule was vague and unclear to them. The last item is just a typo: There is an “s” missing at the end of “organization” in the last line of the proposed rul

• Rule packet: E.7.a DHS Marketing Activities and REPEALS and Act 301 of 2025
• ALC summary agenda Jun 18, 2026
• ALC agenda Jun 18, 2026
• ALC meeting video Jun 18, 2026