U.S. Health and Human Services Secretary Kathleen Sebelius has expressed 'conceptual support' for Arkansas' private option for insurance expansion in a letter to Gov. Mike Beebe.
The Tuesday statement by Beebe's office said the letter was in response to a March 13 memorandum to federal officials that outlined the health-insurance marketplace constructed by Arkansas lawmakers and Beebe.
"On behalf of the Administration, I would like to express our interest in the innovative approach to further expanding access to health insurance coverage through plans participating in the Health Insurance Marketplace that Arkansas is considering," Sebelius wrote in her letter.
"The concept in the memo appears to be generally consistent with the requirements of the Medicaid statute; we look forward to reviewing your demonstration proposal," she wrote.
Tuesday's Arkansas Democrat-Gazette reported that leaders from the House and Senate recently spoke in favor of giving about 250,000 low-income Arkansans access to government-funded private health insurance.
The private option legislation will need a supermajority in the House and Senate, or three-fourths support in each chamber, to pass.
A July decision from the U.S. Supreme Court allowed states to choose whether to extend Medicaid access to those making up to 138 percent of the federal poverty line, or $15,145 for an individual. It also calls for states to set up a private insurance marketplace for people to pick their own plan.
In a February meeting in Washington, D.C., Sebelius gave Beebe approval to pursue the plan, but the state had not received written confirmation that the federal government would pay premiums for the private health-insurance policies.
Beebe said in the statement that Sebelius' recent letter is that confirmation.
"Now it’s time for action in Arkansas," Beebe said in the statement. "Members of the General Assembly and my administration have built a model that will provide working Arkansans with greater access to health care through private-sector insurance companies.
"Our innovative approach can create a national example of a state using Medicaid premium-assistance funds in an insurance marketplace that best serves its citizens."
Lawmakers are in the "final stages" of preparing legislation, Beebe said.
Sen. Jonathan Dismang, R-Searcy, recently told the Arkansas Democrat-Gazette that he should have a bill ready Tuesday that would enable the private option. An identical bill is being put forward in the House, and the bills are set to run simultaneously since the legislative session is scheduled to end April 19.
Another piece of legislation would be necessary to authorize the state to spend the billions in federal money.
Some lawmakers have expressed recently that the state should delay a decision, including House Republican leader Bruce Westerman.
The Hot Springs representative told reporters before Beebe received the Sebelius letter that the state needed more assurance from the federal government before moving forward.
Beebe remains optimistic that support for the private option will continue to build, he said in the statement.
Read more in Wednesday's Arkansas Democrat-Gazette
