Arkansas plan to change Medicaid expansion program approved by governor, awaits federal OK

Arkansas lawmakers approved curtailing the state's Medicaid expansion program, according to the Arkansas Democrat-Gazette.

Here are seven things to know.

1. The Arkansas Legislature approved two identical bills Wednesday — House Bill 1003 and Senate Bill 3 — which allow for reductions to the state's Medicaid program, according to the report. An Associated Press report published by KATV states Arkansas Gov. Asa Hutchinson has subsequently signed the bills, allowing the state to seek a federal waiver for approval.

2. Under the state's legislative plan, about 60,000 residents would be removed from the Arkansas Medicaid expansion program, known as Arkansas Works, reports the Arkansas Democrat-Gazette. At present, more than 300,000 residents are program beneficiaries.

3. Adults earning up to 138 percent of the poverty level have previously been eligible for enrollment in Arkansas Works. The new plan would change that eligibility standard to adults with incomes of up to 100 percent of the federal poverty level, according to the Arkansas Democrat-Gazette. The eligibility change is expected to be phased in, with full implementation in 2019, according to the report.

4. The plan is designed as a cost-cutting measure for the state, the report notes. The Arkansas Democrat-Gazette cites estimates from the state department of human services that show the eligibility restrictions in the plan would save the state between $66 million and $93 million from fiscal year 2018 through fiscal year 2021.

5. But hospitals in Arkansas would be on the hook for an additional $28 million in uncompensated care costs next year if 50 percent of the 60,000 Arkansas Works enrollees don't have coverage, according to the department of human services estimated in the report.

6. "We're in a position to make adjustments now that I believe will fit in very well with the reform efforts that they're trying in Washington," said Gov. Hutchinson, according to the Arkansas Democrat-Gazette. "I think that we will be a national leader in this effort."

7. The Arkansas plan could potentially begin to take effect as early as January if the federal government gives the OK, according to the report.

Read more about the state's plan here.

 

 

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