On Thursday, a coalition of over 50 health‑care providers across Arkansas sent a letter to the U.S. Centers for Medicare & Medicaid Services (CMS) requesting a two‑year extension of the Arkansas Health and Opportunity for Me (ARHOME) demonstration waiver. The group, which includes the Arkansas Medical Society and hospitals statewide, argues that extending the waiver will allow a thoughtful transition to a new Medicaid delivery system.
Why the extension matters
ARHOME is a hybrid Medicaid expansion program that uses both state and federal Medicaid funds to purchase qualified health plans on the private insurance marketplace for low‑income Arkansans aged 19 to 64 whose incomes are at or below 138% of the federal poverty level. As of August 1, the program covered nearly 214,000 residents.
“A transition involving more than 200,000 beneficiaries and the organizations that provide their care requires careful planning, clear communication and coordination,” said Dr. Naveen Patil, president of the Arkansas Medical Society. “As physicians, our first responsibility is to our patients.”
Background on the waiver
Last month CMS denied Arkansas’s request for a five‑year waiver to keep the hybrid model in place. The state then asked for a two‑year renewal, saying the shorter period would give lawmakers time to design a replacement program. The current waiver expires on Dec. 31.
If the two‑year extension is not granted, Department of Human Services Secretary Janet Mann said beneficiaries would shift to direct fee‑for‑service Medicaid rather than private plans. While coverage would continue, Mann warned the change could be “disruptive, potentially, to providers and beneficiaries.”
State officials’ next steps
Secretary Mann indicated that her department is evaluating both fee‑for‑service Medicaid and managed‑care models as possible successors to ARHOME. Staff are compiling pros and cons and consulting actuaries to assess financial impacts.
Dr. Samuel Bledsoe, president‑elect of the Arkansas Medical Society, added that the extension would give lawmakers, federal Medicaid officials, and state leaders the time needed to design a new delivery system responsibly. “This is about getting it right,” he said.
Federal funding context
Under the Affordable Care Act’s Medicaid expansion, the federal government pays 90% of program costs while the state covers the remaining 10%. Arkansas’s hybrid approach, sometimes called the “private option” or “Arkansas Works,” has been in place since the state first expanded Medicaid more than a decade ago.
The coalition’s letter also requested that individuals currently enrolled in ARHOME continue to receive benefits throughout any transition, regardless of the extension decision.
What’s next?
CMS has not yet responded to the coalition’s request. The outcome will shape how Arkansas provides health coverage to its most vulnerable residents and will influence the state’s broader health‑care strategy.
Original reporting: Texarkana Gazette — read the source article.
