Beebe urges lawmakers to fund 'private option'

LITTLE ROCK — Gov. Mike Beebe is warning lawmakers they'll have to repeal tax cuts or reduce services if they don't continue the state's plan to expand insurance coverage to thousands of low-income residents.

Beebe said Friday that lawmakers should be aware of the consequences if they don't approve the funding bill for the state's private option plan to purchase private insurance using federal Medicaid funds. Lawmakers approved the plan as an alternative to expanding Medicaid.

Continuing the plan will require a three-fourths vote from the House and Senate when the Legislature convenes in February.

Beebe told members of Arkansas' Independent Colleges and Universities that rejecting the private option appropriation would jeopardize tax cuts approved this year since they'll be funded by the savings the state will see from the private option.

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