Health Plan and Prescription Drug Coverage Identification Cards

Hugh McDonald SECRETARY OF COMMERCE AID 14 4`"` * * BULLETIN NO. 19-2024 Alan McClain COMMISSIONER, ARKANSAS INSURANCE DEPARTMENT TO: ALL LICENSED HEALTH INSURERS, HEALTH MAINTENANCE ORGANIZATIONS, SELF-FUNDED EMPLOYER PLANS, THIRD-PARTY ADMINISTRATORS, PHARMACY BENEFIT MANAGERS, AND OTHER INTERESTED PARTIES FROM: ARKANSAS INSURANCE DEPARTMENT DATE: OCTOBER 15, 2024 RE: HEALTH PLAN AND PRESCRIPTION DRUG COVERAGE IDENTIFICATION CARDS The purpose of this Bulletin is to notify healthcare payors of a 2023 amendment to The Healthcare Payor Identification Card Act (Ark. Code Ann. §§ 23-79-2001 et seq.) and to clarify AID's expectations regarding terminology on healthcare identification cards. The Act, as amended, requires a healthcare payor to "issue an identification card to a member that provides an indication of whether the health benefit plan is insured, self-funded, or short-term, limited duration insurance." When the Act was originally passed in 2019, AID issued Bulletin 6-2019 to clarify AID 's expectations regarding terminology used to indicate the type of plan. AID reaffirms its interpretation of the Act as stated in Bulletin 6-2019, with the only difference being the addition of "short term, limited duration insurance" plans to the types of plans required to be disclosed on a healthcare plan identification card. The absence of language identifying a specific type of plan is not a specific indication of whether the plan is insured, self-funded, or short-term limited duration. The Arkansas Insurance Department understands there may have been confusion on this issue in the past. Healthcare payors shall issue its insureds or enrollees healthcare plan ID cards with language that indicates whether the plan is: Arkansas Department of Commerce Arkansas Insurance Department 1 Commerce Way, Suite 102 • Little Rock, AR 72202 INSURANCE.ARKANSAS.GOV 1. Insured; 2. Self-funded; or 3. Short term, limited duration. A description of one of the three types of plans specified in the Act must appear on every identification card. The terminology should be simple and clear. For suggestions on acceptable terminology for insured or self-funded plans, please see Bulletin 6-2019. For short term, limited duration plans, a payor may use the full description or the acronym "STLD". Payors are not required to reprint and reissue hard copy identification cards that have already been issued. For questions related to this Bulletin, please direct all inquiries to AID's Legal Division at (501) 371-2820 or email insurance.legal@arkansas.gov. Alan McClain Arkansas Insurance Commissioner Date 2