Gov. Asa Hutchinson's plan to change the state's use of federal money for Medicaid expansion was met with a mixed response after being presented to federal health care administrators earlier this month, the governor told legislators Wednesday.
Hutchinson wants to have employment and job training incentives as part of his state-specific Arkansas Works plan for Medicaid expansion but doing so will require a waiver from the federal government, which provides funding for the expansion under the Affordable Care Act.
Health and Human Services Secretary Sylvia Burwell said in a letter delivered to Hutchinson on Tuesday that she is open to discussing ways to make the expansion more cost-effective for Arkansas, but cautioned that some of the governor's proposals "push the bounds of what what is allowable under federal Medicaid law."
Speaking to a meeting of the Health Reform Legislative Task Force at the state Capitol, Hutchinson said there are "fundamental differences" in how the Arkansas and federal government view Medicaid expansion.
"Rather than a temporary assistance to an end goal, this administration sees Medicaid expansion as a permanent program," the governor said.
The federal government cannot give to consent to any changes in the state's expansion until the Legislature approves specific proposals, Burwell said in the letter.
Several state legislators up for re-election this year are facing primary challengers who argue that any use of federal funds to expand the state's Medicaid rolls amounts to support for President Barack Obama's health care law, the Arkansas Democrat-Gazette reported Wednesday.
Speaking to the legislative task force, Hutchinson attempted to dispel those accusations, arguing that the state government can't control the federal health care policy.
"I did not create the situation Arkansas is in at the present time. I inherited it," Hutchinson said.
The governor added that he believes if a Republican gains control of the presidency next year, a more conservative health care agenda will likely mimic the chages being proposed in Arkansas.
See Thursday's Arkansas Democrat-Gazette for full details.
