LITTLE ROCK — The board working to establish Arkansas-based health insurance exchanges would allocate less money for computerized enrollment systems but more for staff salaries under a revised grant budget recommended Friday by the board’s grant committee.
The Arkansas Health Insurance Marketplace board’s grant committee unanimously recommended spending up to $64,159,836 on computer systems allowing people to shop for coverage, apply for subsidies and enroll in plans.
That’s about $13.8 million less than the board initially budgeted in its application for a grant from the U.S. Department of Health and Human Services’ Centers for Medicare and Medicaid Services.
Meanwhile, the board would budget for 25 employees, more than double the 12 employees in its original budget.
The budget for salaries and fringe benefits over three years would increase from $4.5 million to $8.2 million.
Marketplace spokesman Heather Haywood said the marketplace is taking responsibility for some duties from the Arkansas Department of Insurance sooner than initially expected, creating the need for the additional positions.
At the same time, marketplace officials believe the computerized enrollment systems will cost less than initially estimated, she said.
“We’re very comfortable” with the recommended budget amount, she said.
Created by the Legislature in 2013, the marketplace board is using money from a $99.9 million federal grant to set up exchanges for small businesses and individuals to replace the ones set up for the state by the federal government.
Marketplace off icials say a state-based exchange could be tailored to better suit Arkansas’ needs.
The new budget is required in part because the amount awarded was less than the $126 million the board requested.
The Centers for Medicare and Medicaid Services recommended $10 million of the reduction in the budgeted cost for the enrollment system.
Other revisions would reduce the amount to pay a marketing firm by $7 million, to $3 million, and the amount for a consumer assistance call center by $5 million, to $10 million.
At the same time, the board would increase the amount to pay companies to monitor the enrollment system implementation by about $1.8 million, to $5.3 million.
A proposed transfer of other grant money from the state Insurance Department to the marketplace is expected to offset some of the cuts, marketplace officials said.
The Insurance De - partment has been using the money to help regulate the plans offered on the federal exchange and provide information to consumers.
Federal officials won’t allow the department to spend that money after June 30, Insurance Commissioner Allen Kerr has said.
Federal officials will allow the marketplace to use the money for up to one additional year to support the transition to state-based exchanges, Kerr has said. About $22 million in the Insurance Department’s grant money hadn’t been spent as of Feb. 1.
The full marketplace board will vote on the revised budget for the $99.9 million grant Wednesday.
After it’s approved by the board, the budget will be sent to the Centers for Medicare and Medicaid Services for approval.