Arkansas panel backs Medicaid plan, split over managed care

5 p.m. UPDATE:

LITTLE ROCK — Lawmakers have endorsed Gov. Asa Hutchinson's plan to keep Arkansas' hybrid Medicaid expansion with new limits but are split over his plan to have private companies manage some of the state's services for the developmentally disabled and mentally ill.

A legislative task force recommended lawmakers consider Hutchinson's proposal to keep and rework the state's "private option," which uses federal funds to purchase private insurance for low-income residents. Hutchinson has proposed renaming the program "Arkansas Works," and the Legislature is to take up the plan at a special session next month.

The panel, however, deadlocked over Hutchinson's proposal to hire managed care firms to administer portions of the state's Medicaid program.

EARLIER:

LITTLE ROCK — Consultants hired by the Legislature say ending Arkansas' hybrid Medicaid expansion would cost the state as much as $757 million over the next five years.

The Stephen Group told a legislative task force Monday that Arkansas' Medicaid spending would increase $213 million over the next five years if the state ended the "private option" and would see a $544 million drop in tax revenues associated with the program. Under the private option, Arkansas is using federal funds to purchase private insurance for low-income residents.

Gov. Asa Hutchinson has proposed keeping the program but wants to add new restrictions.

The panel on Monday is expected to vote on recommended legislation for a session on the program's future and on proposals to have private companies manage part of the state's Medicaid program.

Read Tuesday's Arkansas Democrat-Gazette for full details.

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