Gov. Hutchinson Outlines Goals For Health Reform, Restore Hope Summit

Gov. Asa Hutchinson said flexibility is key in order for the state to sustain health care support for 220,000 Arkansans currently on the Private Option.

Hutchinson made his remarks on this week’s edition of Talk Business & Politics with Roby Brock, which airs on KATV Ch. 7 at 9 a.m.

The governor was asked if it was an accurate description of his mid-week legislative health care presentation to say he wants to keep the Medicaid expansion – and the money that comes with it – if the Feds will give Arkansas all the waivers it wants.

“That’s a very good summary of it. I would add not just the waivers that I requested, but more flexibility overall because we have to create savings as one of the elements in our program in order to cover the expanded population and the state’s share of that without draining state revenues,” Hutchinson said.

“It’s the right thing to do for Arkansas in terms of health care, in terms of our budget, in terms of our economy to make sure that we can have that flexibility,” he added.

Hutchinson stressed that his ideas were simply to push the dialogue forward. He claimed that the final proposals from a working group he supports will have to provide “a legislative solution.”

Managed care – or outsourcing of certain health care programs administered by the state – has been a big topic of conversation, including nearly a day’s worth of testimony last week in a legislative task force hearing.

Hutchinson was asked if managed care was inevitable?

“No. It’s inevitable that we need to consider cost savings in the program and this is a very important element that I offer to them,” he said. “We’re going to have to have $50-$60 million a year in savings. Where does that come from? It can come from a managed care approach. It can come from an expansion of the payment improvement initiative. It can come from reducing fee-for-service. It can come from other types of efficiencies. You don’t have to say ‘yes’ to all of those, but you can’t say ‘no’ to every one of those. You have to say ‘yes’ to something.”

On Tuesday and Wednesday of this coming week, Hutchinson’s office will lead the Governor’s Restore Hope Summit. The event is billed as an interfaith summit to encourage faith-based communities to help find homes for foster care children and help departing inmates re-enter society.

Hutchinson said he had three primary goals for the two-day event. He said he wanted to thank the faith-based community for its social services work; listen to obstacles that may impede more collaboration with the state; and “inspire and ask them to do more.”

Watch the governor’s full interview below. Also, Talk Business & Politics’ Steve Brawner and KATV’s Elicia Dover held a roundtable discussion on health care reform, Rep. Mike Holcomb’s party switch, and State Treasurer Dennis Milligan’s new ethics challenge. Watch that video below as well.