Moving Forward on Arkansas’ Innovative Plan to Provide Health Coverage to 200,000 Arkansans

By Cindy Mann CMS Deputy Administrator and Director, Center for Medicaid and CHIP Services

Today, the Centers for Medicare & Medicaid Services announced the approval of the Arkansas Medicaid 1115 Demonstration to expand Medicaid coverage to over 200,000 people that do not have access to health coverage.  This demonstration is part of the state’s larger initiative to create affordable, quality coverage options for all its residents. This coverage is possible thanks to the Affordable Care Act.

Over the last few months, CMS has worked closely with Arkansas on the Arkansas Health Care Independence Program, or as they call it in Arkansas, the Private Option and has benefited from public comments from a diverse group of stakeholders. Under the Private Option demonstration, the state will use premium assistance to provide adults who make $15,280 or less with coverage provided by Qualified Health Plans operating in the Health Insurance Marketplace. As a result, most of the newly eligible adults in Medicaid will receive almost all of their Medicaid benefits and cost-sharing coverage through the same plans that are serving Arkansans who enroll through the federally facilitated Marketplace. Under this and all premium assistance approaches, individuals in the demonstration retain all the rights, responsibilities, and protections as other Medicaid beneficiaries, including cost-sharing protections.

Outreach, the application process, and plan choice will be the same regardless of whether an Arkansas resident is enrolled in Medicaid or has a premium tax credit through the Marketplace. Arkansas is leading the state’s outreach effort for the Marketplace.  It is training “Health Insurance Guides” to help individuals in all 75 counties understand their options.  It has been running advertising on 28 television stations, 24 regional radio stations, 118 community radio stations, and in 120 community newspapers.  In addition, ads have been placed on 227 billboards, 100 gas pumps, two Central Arkansas Transit buses, and direct mail will be sent to 254,000 households and 172,000 small businesses.  The marketing tag line of “Get In” has switched to “Get Informed” and will be shift to “Get Enrolled” beginning October 1, 2013. Open enrollment for the new Medicaid demonstration as well as the Marketplace will begin on October 1, 2013 with eligibility effective January 1, 2014.

The Administration remains committed to working with states on the flexibility and resources they need to build new systems for health coverage.  Premium assistance is one option, and we will continue to work with states on solutions that work best to meet shared goals.  We encourage states to come to us with their delivery system ideas, and look forward to continuing to work with states on these and other innovative approaches to provide affordable coverage to all Americans.

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