Immigrants who apply for Arkansas Medicaid benefits would be given up to 90 days to provide documents on their legal status under a policy change approved Tuesday by a legislative panel.
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Such immigrants would receive Medicaid coverage during the 90-day "reasonable opportunity period," at a cost of $9.8 million annually, state Department of Human Services officials told members of the Legislative Council's Administrative Rules and Regulations Subcommittee.
The subcommittee approved the policy change after department officials said the federal Centers for Medicare and Medicaid Services has threatened to withhold about $270 million annually in Medicaid reimbursement for administrative expenses if the policy isn't adopted.
"We're at their mercy right now, and there is no more time," David Sterling, the department's chief counsel, said.
Dawn Stehle, the Human Services Department's deputy director for health and Medicaid, said the policy has been a federal requirement since the 1980s and Arkansas is the only state that hasn't implemented it.
The state currently gives applicants 10 days to verify their immigration status.
Under federal rules, Medicaid coverage is available to immigrants who have been in the country legally for at least five years and meet other eligibility requirements.
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Illegal immigrants are not eligible for coverage.
Sen. Jim Hendren, R-Sulphur Springs, said Arkansas could get more flexibility under the administration of President-elect Donald Trump but must follow the rules set by the current federal administration until then.
"I don't think it's time to do a quarter-billion dollar bet that they're going to blink," he said.
The change will go to the Legislative Council, which meets on Friday, for final approval.
A Section on 12/14/2016