The Arkansas Private Option — which launched last fall — uses federal funds to offer health insurance premium assistance to more than 200,000 state residents with incomes below or at the federal poverty line. The state uses those federal funds to provide vouchers that people can use to buy health plans from private insurers through the health insurance exchange.
More than 100,000 people have gained coverage through the Private Option so far, says Paul Cunningham, executive vice president of the Arkansas Hospital Association. He also says the program stands to benefit hospitals significantly. Although the AHA doesn't have hard data on the initiative's impact so far, he says some state hospital CEOs have indicated they saw a 25 to 30 percent year-over-year decline in self-pay patients in January.
Since increasing access to health insurance for the poor came up as an issue in Arkansas after the PPACA's passage, the AHA has maintained that expanding coverage for low-income people in the state could save hospitals as much as $200 million. "That's not to say that all uncompensated care will go away, because it won't," Mr. Cunningham says. "But it might stem the growth of uncompensated care to [avoid] really unmanageable levels."
Mr. Cunningham says the Private Option is even better than regular Medicaid expansion because the private health insurance plans it helps people enroll in generally pay better than Medicaid.
Hospitals in the state still have reason to fear the possibility of unmanageable amounts of uncompensated care: Earlier this month, the Arkansas House of Representatives failed to reauthorize financing for the Private Option, falling short of the 75 votes needed to pass legislation that would ensure the program's survival through the next fiscal year.
Although Republican House Speaker Davy Carter has expressed confidence that the bill will ultimately pass, it faces opposition from conservative representatives such as Rep. Bruce Westerman (R-22), who has said passing the appropriation bill for the Private Option would make the state "an enabler for Obamacare," according to a report from The Wall Street Journal.
On Feb. 26, House Speaker Davy Carter (R-43) met for two hours with some of the lawmakers who oppose the Private Option, according to a KY3 report. The House did not vote on the bill that day, and it's uncertain when it will come up for a vote again, although Mr. Carter has said he'll continue negotiating with opponents.
State lawmakers have until March 19 to reauthorize the program's funding. Arkansas Gov. Mike Beebe, a Democrat, has said there will be a $90 million hole in the state's budget if lawmakers don't pass the legislation.
Mr. Cunningham says his organization is among those calling for lawmakers to keep the program alive.
"We're certainly in favor of it because we think the private option provides an avenue for more people to obtain insurance," he says. "We have people at the capital. They will be there until the session ends."
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