Despite Inquiries, House Public Health Approves Private Option Measure

There were a lot of questions as a key House committee approved a bill that supporters say will reform the state’s Medicaid program.

The House Public Health, Welfare and Labor committee approved Senate Bill 96 by voice vote during a committee meeting Tuesday at the capitol.

The committee heard from chairman – Rep. Kelley Linck, R-Flippin – as well as Rep. Joe Farrer, R-Austin, about the bill sponsored by Sen. Jim Hendren, R-Sulphur Springs.

The bill, which now heads to the state House, would end the Private Option as of Dec. 31, 2016 as well as create a 16-member task force to study the healthcare issue.

Linck told the committee that the bill would “put the Private Option debate behind us” and instead use ideas and resources to reform the overall Medicaid program.

Farrer said the bill would also support positive steps including personal responsibility to help control costs for the program.

In the past, state officials around the country have seen increases in their share of the cost for the Medicaid program leading to higher state budgets.

However, legislators asked a series of questions for both Linck and Farrer, as well as Arkansas Department of Human Services official John Selig.

Most of the questions involved the task force issue as well as funding and the Dec. 31, 2016 deadline.

Rep. Richard Womack, R-Arkadelphia, asked Farrer about moving the Dec. 31, 2016 deadline “back any at all.”

Farrer countered that if the state were to end the program before the Dec. 31, 2016 deadline, the state could face a lengthy appeals process with the federal government.

“You still have to continue the insurance,” Farrer said, noting the appeals process could last between six months and two years.

Rep. Josh Miller, R-Heber Springs, asked Farrer about trust and ending the program.

“There is a general lack of trust in our government right now,” Miller said of the process.

Farrer said Section 5 and Section 6 of the bill provided a clear definition as to ending the program.

“The purpose of this section is to ensure that Medicaid eligibility does not continue past Dec. 31, 2016, for the current Medicaid expansion population under the Health Care Independence Program, commonly referred to as the ‘Private Option’, including the current Medicaid expansion population in the eligibility category … without express approval through a proper enactment of law by the General Assembly,” Section 5 (d) reads.

“Eligibility, enrollment and participation in Medicaid for the current Medicaid expansion population under the Health Care Independence Program authorized under 20-77-2401, including the current Medicaid expansion population in the eligibility category created by … the Social Security Act shall cease and terminate effective Jan. 1, 2017, in the absence of legislative action by the General Assembly,” Section 6 reads.

On the block grant issue, several legislators asked whether or not state officials were taking a gamble in considering applying for one, or if one would be granted.

Linck said the block grant issue was brought up as an idea for the task force among other issues to consider.

“Has any state gotten a block grant?,” Miller asked the panel.

Selig said states like Rhode Island and Oregon have received funding similar to block grants.

Linck said the task force will have three choices at their disposal – do nothing, create some sort of hybrid program or outright Medicaid expansion.

“I hope for innovative ideas,” Linck said of the task force’s mission. “Forty nine other states have not solved it … and I hope the task force can solve it.”