Dive Brief:
- Arkansas Gov. Asa Hutchinson has announced that he will ask the legislature to fund the private option—the state's unique version of Medicaid expansion—through the end of 2016. He also announced plans to create a task force to come up with a new plan for 2017 and beyond.
- Hutchinson said that the new plan should cover the beneficiaries currently covered by the private option, but be more sustainable in terms of cost.
- According to writer David Ramsey, "waivers on steroids" will become available in 2017, so "it is in fact possible that the state could have much more flexibility to craft conservative twists on its Medicaid program."
Dive Insight:
While the private option has divided state Republicans, Hutchinson's goal to offer an "affordable, competitive" program based on conservative, market-based principles, and to create an affordable alternative by 2017, represents pretty balanced action. After all, the state won't be dumping any of the glut of enrollees that sought coverage under the private option. With the creation of a new task force, Hutchinson is likely to keep the PO alive while biding some time. Other conservative-leaning states trying to figure out how to keep Medicaid afloat might do well to take note. Now, Hutchinson's team must engage in the difficult work of finding an alternative plan for those who need coverage.
Want to read more? You may enjoy this story on whether the private option will sink or save providers.