Arkansas Secretary of Human Services Janet Mann told the Arkansas Legislative Council’s Hospital, Medicaid, and Developmental Disabilities Study Subcommittee on Monday that she expects the state’s 215,000‑plus Medicaid expansion participants to continue receiving some form of health coverage. Mann said the Department of Human Services is confident the Centers for Medicare & Medicaid Services (CMS) will grant a two‑year extension for the Arkansas Health and Opportunity for Me (ARHOME) program.
Potential paths if the extension is denied
If CMS does not approve the requested grace period, the state plans to move all ARHOME enrollees to fee‑for‑service Medicaid coverage on Jan. 1. Mann warned that such a shift would be “bumpy for the beneficiaries and fairly quick,” potentially disrupting both providers and patients.
ARHOME is a hybrid model that uses federal funds to purchase private health insurance for low‑income Arkansans. Switching to a managed‑care model would lower the 2.5% insurance premium tax the state collects from the expansion population, while moving to fee‑for‑service would eliminate that tax revenue entirely.
Legislative outlook
The majority‑Republican Legislature is slated to consider the issue during its session beginning in January. Rep. Les Eaves (R‑Searcy) asked whether removing participants from private plans would affect commercial insurance premiums. Mann acknowledged a likely “disruption in the marketplace” but said specific impacts are still being evaluated, with input sought from the Arkansas Insurance Department.
Provider concerns and recent developments
Medical providers and hospital leaders have voiced worries that losing the expansion could strain an already tight health‑care system. Arkansas hospitals receive some of the nation’s lowest Medicaid reimbursement rates, yet labor, equipment and administrative costs have risen sharply in recent years, prompting some facilities to cut services.
Centene, a major health insurer, announced in July that it will cease participation in the state’s Medicaid expansion next year, a decision unrelated to the CMS denial but adding to uncertainty for providers.
Work‑requirement rollout
In parallel with the extension request, the state has begun a “soft launch” of work‑requirement checks for expansion recipients. Starting July 1, DHS began verifying compliance, giving non‑compliant individuals 30 days to either meet the requirement or submit proof for an exemption.
The American Cancer Society Cancer Action Network issued a statement supporting the two‑year extension, emphasizing that continuous coverage leads to earlier cancer diagnoses and better outcomes.
Historical context
Arkansas was the first Southern state to adopt Medicaid expansion under the Affordable Care Act in 2013 and remains the only state using the hybrid model that purchases private coverage with federal dollars. Nine states have yet to expand Medicaid.
While the state prepares for possible scenarios, officials stress the importance of avoiding any lapse in coverage that could harm vulnerable Arkansans and the health‑care providers who serve them.
Original reporting: NEA Report (Jonesboro) — read the source article.
