LITTLE ROCK, Ark. (AP) — Arkansas Gov. Mike Beebe on Tuesday signed into law a plan to use federal Medicaid money to purchase private insurance for thousands of low-income workers, and state officials said they will now work to get final federal approval for the proposal.

The Democratic governor and Republican legislative leaders both touted the “private option” as an alternative to expanding Medicaid’s enrollment under the federal health care law. Beebe signed the measure as lawmakers wrapped up this year’s legislative session.