Dive Brief:
- Yesterday, the Health Reform Legislative Task Force approved efforts by Governor Asa Hutchinson (R) to seek federal waivers to explore Medicaid expansion in the state.
- The Stephen Group, consultants hired by the state, said costs should be cut via managed care, or to let private companies manage parts of Medicaid for high-cost patients. On Tuesday, some task force members voiced concerns about managed care and instead raised an alternative proposal called DiamondCare.
- The task force OK'd Hutchinson's efforts to negotiate "private option" changes, "which uses federal funds to purchase private insurance for low-income residents," according to the Associated Press.
Dive Insight:
If Arkansas did adopt a hybrid Medicaid expansion plan, the move would "help in negotiating changes to a program providing coverage to more than 200,000 people," the Associated Press stated, adding, "The legislative panel looking at the program's future stopped short of endorsing specific proposals to meet Hutchinson's goal to cut as much as $60 million in annual state funding to Medicaid to make up for the cost when Arkansas begins paying a portion of the expanded coverage."
The private option, which uses federal Medicaid funds to subsidize private health insurance for low-income residents will end December 31. The task force has to recommend a new model to replace that program by the end of the month.
Rep. Justin Boyd (R-Fort Smith) told the Arkansas News Bureau the patient-centered model has been shown to lower costs. "It makes sense to expand that, and reel in the providers that don't want to play and move forward in that way, rather than taking a whole new risk on a whole [a]nother model."
Co-Chairman Sen. Jim Hendren (R-Gravette) told the task force it needs to recommend some "general principles" to Hutchinson so he can begin the process of seeking federal Medicaid waivers if necessary.