Gov. Mike Beebe received a letter Tuesday from U.S. Health and Human Services Secretary Kathleen Sebelius that states the federal government will work with Arkansas to give government-funded private health insurance to 250,000 low-income Arkansans.
The letter includes few new details but points to two memos regarding the proposal.
The letter states that the federal government is interested in Arkansas’ “innovative approach … which you submitted to us in a memo March 13.”
That memo was sent by the state Department of Human Services to give the federal government more details about what Arkansas wants to do. It states:
Low-income adults would apply for benefits through thesame exchange [marketplace] as higher-income adults. If their income is found to be below 138 percent of the federal poverty level and they meet other qualifications, their premium would be paid with government funds.
Pregnant women and individuals with very high medical costs would be covered by private insurance. Enrollment in other Medicaid programs would also drop.
Families could keep their health plan even if their federal subsidy changes. This aims to keep people from switching back and forth from private insurance to Medicaid if their income drops below 138 percent of the federal poverty level.
The number of people participating in Arkansas’ online insurance pool would potentially double, making it easier to recruit insurance companies to compete.
Sebelius’ letter also refers to “additional guidance” released by the department March 29. That memo is in a question-and-answer format and appears to be directed toward other states interested in Arkansas’ so-called private option.
That memo states:
Partial expansion of service to cover only some of the people below 138 percent of the poverty level is not an option.
Benefits offered through the private option must be comparable to Medicaid benefits.
People who receive premium assistance are still Medicaid beneficiaries.
Sebelius will consider each state’s request for the private option on a case-bycase basis.
Proposals must offer beneficiaries at least two health plans.
Front Section, Pages 7 on 04/03/2013