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ArkansasSB202026 Fiscal SessionSenate

AN ACT FOR THE DEPARTMENT OF HUMAN SERVICES - DIVISION OF MEDICAL SERVICES APPROPRIATION FOR THE 2026-2027 FISCAL YEAR.

Sponsored By: Joint Budget Committee

Enacted

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 4 benefits, 1 costs, 1 mixed.

Community care funding for people with disabilities

Beginning July 1, 2026, DHS must reserve the first $37.6 million allocated to its Grants Fund Account for disability services. The money is only for home and community services for people with intellectual and developmental disabilities. Services must be through the Community and Employment Supports Medicaid Waiver or a successor waiver providing those services. Money left on June 30, 2027, carries forward for the same purpose through June 30, 2028. The law does not set a payment or service amount for each person.

Funding for Arkansas Medicaid patients

For July 1, 2026, through June 30, 2027, the law provides about $10.398 billion for Medicaid and related services. This includes about $8.336 billion for hospital and medical care and $625.637 million for prescription drugs. Private nursing home care gets about $1.049 billion; public nursing home care gets $217.529 million. ARKids B gets about $167.661 million, the Child and Family Life Institute gets $2.1 million, and the Infant Infirmary gets $327,608. The law also provides about $12.768 million for agency operations, with up to 91 regular positions and 10 temporary part-time positions. DHS must report monthly on Medicaid Program Trust Fund distributions and balances, including its subfunds. Reports must list each distribution’s amount, date, fund code, budget line, and purpose, with fiscal-year totals by month. Reports are due to the legislative budget review subcommittee at least 10 days before its scheduled meeting. Spending must follow state purchasing, accounting, budget, and fiscal rules.

Funding to protect nursing home residents

From July 1, 2026, through June 30, 2027, the Long-Term Care Trust Fund provides $4.5 million for facility problems or closures. This money can help residents move, replace lost personal funds, and keep facilities operating while problems are fixed or facilities close. The same trust fund provides $4 million for nursing home quality grants and aid. A separate receivership fund provides $100,000 for expenses of people legally appointed to manage troubled long-term care facilities. The law does not set a payment for each resident or promise a specific quality improvement.

Medicaid matching funds for Arkansas Children’s Hospital

From July 1, 2026, through June 30, 2027, Arkansas Children’s Hospital can ask DHS to retain up to $2.1 million. This money comes from the Child and Family Life Institute grant already included in the law’s Medicaid funding. It must match federal funds for extra Medicaid payments to the hospital. The retained money cannot be transferred to the General Revenue Allotment Reserve Fund. This supports hospital funding, not a direct payment to families.

Limits on health coverage enrollment outreach

From July 1, 2026, through June 30, 2027, DHS cannot fund unsolicited enrollment promotion or advertising for two coverage programs. These are Arkansas Health and Opportunity for Me and the Arkansas Health Insurance Marketplace. Exceptions allow specified communications with licensed agents, requested messages, factual information, responses to questions, and enrollment-only websites. DHS also cannot use appropriations or apply for or accept funds for marketplace navigators, guides, application counselors, or certified licensed producers. State training and oversight duties and certified counselors at health-related institutions, including the University of Arkansas for Medical Sciences, are exempt. DHS cannot shift budget authority to get around these limits, which do not change household eligibility for coverage.

Medicaid provider payments can rise or fall

From July 1, 2026, through June 30, 2027, Arkansas Medicaid uses federally approved methods to set provider payment rates. DHS can raise or lower rates for good cause, including equal-quality care at lower cost or higher Medicaid prices than other purchasers pay. Other reasons include technology or process changes affecting costs and a severe economic downturn affecting the state budget. Annual inflation increases depend on enough state funding, and requesting providers must receive federal Market Basket inflation forecasts. Changes to general or specific rate-setting methods need prior approval from the Legislative Council or Joint Budget Committee. If a court invalidates that approval requirement, the entire rate-setting section becomes void.

Sponsors & Cosponsors

Sponsor

  • Joint Budget Committee

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 127 • No: 1

House vote • 4/27/2026

House Vote - Monday, April 27, 2026 3:41:26 PM

Yes: 94 • No: 1

Senate vote • 4/23/2026

Senate Vote - Thursday, April 23, 2026 12:21:05 PM

Yes: 33 • No: 0

Actions Timeline

  1. Notification that SB20 is now Act 132

    4/29/2026Senate

  2. DELIVERED TO GOVERNOR.

    4/28/2026Senate

  3. Reported correctly enrolled and ordered delivered to the Governor.

    4/28/2026Senate

  4. ORDERED ENROLLED

    4/27/2026Senate

  5. Returned from the House as passed.

    4/27/2026Senate

  6. Returned To Senate as Passed.

    4/27/2026House

  7. EMERGENCY CLAUSE ADOPTED

    4/27/2026House

  8. Read the third time and passed and ordered transmitted to the Senate.

    4/27/2026House

  9. Considered in the Committee of the Whole, and recommended do pass.

    4/27/2026House

  10. RULES SUSPENDED

    4/27/2026House

  11. Read the first time, rules suspended, read the second time and placed on the CALENDAR.

    4/23/2026House

  12. RECEIVED FROM THE SENATE

    4/23/2026House

  13. Ordered Immediately transmitted to the House.

    4/23/2026Senate

  14. EMERGENCY CLAUSE ADOPTED

    4/23/2026Senate

  15. Read the third time and passed.

    4/23/2026Senate

  16. Rules suspended.

    4/23/2026Senate

  17. Returned by the Committee, with the recommendation that it Do Pass

    4/23/2026Senate

  18. Read first time, rules suspended, read second time, referred to JOINT BUDGET COMMITTEE

    4/8/2026Senate

  19. Filed

    4/1/2026Senate

Bill Text

  • SB20 - Introduced

    4/1/2026

    PDF

  • Act Version

    PDF

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