Two of the legislative architects of the private option said Gov. Asa Hutchinson's health care speech Thursday helped the chances of the private-option program being reauthorized by lawmakers.
The program uses federal dollars to purchase private health insurance for low-income Arkansans, but the state will start having to pick up 5 percent of the cost in fiscal 2017. The state's cost will rise to 10 percent in fiscal 2020. Hutchinson estimated the cost to the state at more than $221 million in fiscal 2020.
"Anytime that you have the governor providing direction, I think his direction is one that is easier to follow," said Senate President Pro Tempore Jonathan Dismang, R-Searcy.
Sen. David Sanders, R-Little Rock, said "the cause and effort for health care reform and Medicaid reform received a solid boost from the governor."
"I think it makes things much easier in the near term, but our focus has never been on beginning and ending the support for the program," said Sanders. "We are not pouring concrete. We are modeling clay."
At the University of Arkansas for Medical Sciences on Thursday, Hutchinson called for reauthorizing funding for the program through Dec. 31, 2016. He also advocated forming a legislative task force to make recommendations by year's end for changing the state's entire Medicaid program, including another way to provide health insurance for private-option participants.
Hutchinson said U.S. Health and Human Services Secretary Sylvia Burwell has committed to work with him on how to "encourage employment" of people on taxpayer-subsidized health insurance.
Hutchinson and other state officials met with Burwell in Washington on Jan. 16.
Senate Republican leader Jim Hendren, R-Sulphur Springs, who has voted against the private option in the past and is Hutchinson's nephew, said he would vote to reauthorize funding for the program through Dec. 31, 2016.
"I think the governor has taken a very thoughtful reasonable approach, and I can support that approach," he said. "While I didn't favor putting 220,000, 250,000 people on the program, I certainly think we got to be fair in how we deal with those folks, and this gives us time to make a decision."
"I don't anticipate the kind of drama that we have had in the past" about reauthorizing the private option in the Legislature, he said.
In 2013 and 2014, the Legislature barely reached the three-fourths vote threshold to authorize funding for the program. Also, the program has deeply divided Republicans on the campaign trail and in the Legislature.
Sen. Bart Hester, R-Cave Springs, who has voted against the private option in the past, said he'll support Hutchinson's time frame.
"Sometimes things don't end as quickly as all of us would have liked, but at the end of the day I believe the bill that comes out is going to say 'The end of the private option,' and I am going to be voting for the end of the private option," he said.
Hester later added: "If there is another bill to end it sooner, I'll support that too."
Senate Public Health, Welfare and Labor Committee Chairman Cecile Bledsoe, R-Rogers, who opposed the private option in 2013 and 2014, said Hutchinson "has a very good plan."
Asked if she would vote to reauthorize funding for the private option until the end of 2016, she said, "I could vote for this, but I'd like to see a bill for total repeal first and see where that goes.
"I think this is a good start," Bledsoe said.
Sen. Gary Stubblefield, R-Branch, who has voted against funding the private option in the past, said he doesn't know how he'll vote this year.
"I don't think [Hutchinson's] speech will change a lot of the debate. I really don't," he said.
Sen. Terry Rice, R-Waldron, who has voted against the private option in the past, said he's skeptical about Hutchinson's plans.
"The task force is not going to change any of the costs by the end of 2016, and how many more people will be on it before the end of 2016?"
Sen. Scott Flippo, R-Bull Shoals, who campaigned against the private option, said his position hasn't changed. But he stopped short of saying he'll vote against reauthorizing funding for the private option.
Sen. Blake Johnson, R-Corning, another lawmaker who campaigned against the private option last year, said Hutchinson "took care of both sides of the issue and made nobody completely happy." Johnson said he wants to see the language of the legislation reauthorizing funding for the private option before deciding how he'll vote.
Sen. Linda Collins-Smith, R-Pocahontas, who campaigned against the private option last year, declined to comment Thursday about Hutchinson's speech, saying she'll issue a written statement about it later.
Sen. Missy Irvin, R-Mountain View, who supported the private option in 2013 and opposed it in 2014, said: "I'm just letting [Hutchison's speech] sink in. Just let it all sink in, and we'll see where we go from there."
Sen. Larry Teague, D-Nashville, who has voted for the private option in the past, said Hutchinson's plan "should be a win-win for both sides.
"People keep coverage until the end of next year for two years, but we are going to look at it and figure out ways to cut costs," said Teague, co-chairman of the Joint Budget Committee.
"The governor won with a pretty clear majority. I think the Legislature understands that and that our people expect us to help him. They'll be posturing and fussing, but in the end we'll [reauthorize funding for the private option]," said Teague.
House Public Health, Welfare and Labor Committee Chairman Kelley Linck, R-Flippin, who voted to authorize funding for the private option in 2013 and 2014, said Hutchinson's speech has shifted the debate about the program's future.
"We are not cutting off our head. We are just cutting off our arm a little bit," he said. "It's not this sudden move of we got to do this immediately and have a new solution. It gives us a chance to build a new solution."
Rep. Charlene Fite, R-Van Buren, who voted against the private option in the past, said she wants to give the issue deeper study.
Fite said she is one of many House Republicans who denounced the private option on the campaign trail, but who also believes strongly in Hutchinson.
"I'm thinking right now we're in a honeymoon period with our new governor, and everyone is wanting him to succeed," she said. "I have lots of confidence in our new governor, so I'd like to see the bills and see exactly what's going to happen before I come out and say something rash."
Rep. Karilyn Brown, R-Sherwood, who campaigned against the private option last year, said she wants to "support our governor but I also want to support my constituents who are adamantly opposed to the private option."
Brown said she doesn't know how she'll vote on the proposal but will study the legislation.
Rep. Dwight Tosh, R-Jonesboro, who campaigned against the private option, said Hutchinson gave him a lot to think about, but that if the vote to pay for the program was taken tomorrow, he'd vote against it.
"I campaigned strongly against it, and I've not wavered on that position," Tosh said.
Rep. Joe Farrer, R-Austin, another who voted against the program in the past, said "not everyone's gonna like it, but that's the sign of a good bill.
"It does about 80 percent of what I want it to do. Like I said, I'll support the bill."
Rep. Justin Harris, R-West Fork, who opposed the private option in the past, said he'll support Hutchinson's plan given that the program has an end date.
"It will be [my] first time voting for it, so long as we have an end in sight for us," Harris said. "I don't think [Hutchinson] has let us down. I think it's a compromise."
State Democratic Party Chairman Vince Insalaco of North Little Rock thanked Hutchinson in a written statement for asking the Republican-controlled Legislature to extend the private option by 18 months.
"[The program is] a bipartisan program that has saved local hospitals and provided health insurance to over 200,000 Arkansans who cannot otherwise afford it," Insalaco said. "We hope that all members of the Legislature will work to educate their constituents regarding the true benefits ... and how it helps all Arkansans."
State Republican Party Chairman Doyle Webb of Benton said in an interview that Hutchinson is taking the state in the right direction on the private option.
"[Hutchinson's] looking at the big picture and the long term for all Arkansans," Webb said.
By ending the program on Dec. 31, 2016, "It will give time for there to be a solution to be developed. I believe the party will be together on this at the end of the day," said Webb.
Metro on 01/23/2015