Arkansas’ Republican governor is pushing the Obama administration to accept more changes to the state’s Medicaid program before it renews the expansion of the program under Obamacare.
Arkansas has already expanded Medicaid under Obamacare, but received a waiver from the federal government to adopt several changes to the program. That waiver expires in December, and Gov. Asa Hutchinson wants the federal government to grant a new waiver that has further changes.
The move comes at a time when several other red state governors have pushed for changes to Medicaid in exchange for expanding the program under the controversial federal healthcare law.
Hutchinson told reporters during a press conference in Washington Friday that the Obama administration hasn’t granted him any flexibility to change Medicaid.
“I would not be supportive of a continuation of the Medicaid expansion without the reforms that I have outlined,” he told reporters.
Specifically, Hutchinson wants to ensure that certain low-income people who are working are required to buy health insurance through their employers, and not Medicaid.
He said there are workers under 138 percent of the federal poverty level who would qualify for Medicaid under the expansion, but are still working. Those workers would be unlikely to pay for the employer’s insurance if they are eligible for Medicaid.
Hutchinson couldn’t say how many Medicaid beneficiaries would have to get their employer’s health insurance instead of Medicaid coverage. But he said the state government could save $29 million a year through the move.
“You are seeing a reduction of employer-based insurance because of that Medicaid expansion and that is a concern to me,” he said.
To help avoid rising costs for the state, another reform would require people who could benefit by the expansion to pay a share of the coverage. For example, someone earning 100 percent of the federal poverty level would have to pay $19 a month under his proposal, he said.
Hutchinson also hopes to add a program that would waive the cost-sharing requirements for beneficiaries if they accomplish certain health outcomes such as making doctor appointments.
The state’s current waiver for Medicaid expansion expires on Dec. 31, and the Arkansas legislature will consider a new waiver in April. Currently, Medicaid expansion covers more than 250,000 people in the state.
Hutchinson isn’t the only red-state governor pushing for a change to Medicaid. Of the 30 states that expanded Medicaid, about six of them have alternative programs.
Some of the waivers focus on forcing beneficiaries to cover part of their Medicaid coverage.
