With major factors affecting Arkansas’ Medicaid program looming in the near future, this legislative session will see clear health care and fiscal policy direction from Gov. Sarah Sanders and a new Republican overwhelming majority on the Capitol. You will need.
Senator Missy Irvin of R-Mountain View, chair of the Senate Public Health Committee, appeared on this week’s Capitol View program to discuss these implications.
First of all, the state’s healthcare system is currently fragile. Many hospitals, especially in rural areas of the state, are in crisis as pandemic funding has dried up, yet labor and supply costs are still very high. With federal Medicare and Medicaid reimbursement rates unchanged for years, hospital administrators say Congress needs to approve higher rates to keep up with inflation and decades of rising costs. claim.
“we [the state] You can change your Medicaid rates, but not by a lot,” Irvin said. “There was a rate review [former] Governor Hutchinson was introduced by executive order, but it was systemic and we made some changes there. I’m here. ”
The end of the COVID-19 pandemic emergency declaration this spring will mark a shift in policy moves that previously allowed states to automatically add Medicaid recipients. Arkansas (and other states) plan to “roll back” ongoing enrollment in Medicaid. The move is expected to significantly reduce Medicaid rolls for more than 1 million citizens. It also reduces federal matching rates for Medicaid in Arkansas.
“We operate on Medicaid under the Federal Medical Assistance Program, FMAP. Federal government, 30% state,” Irvin said. “Due to a public health emergency, [fed contribution] It rose to about 77.51%. So, for every 1% swing, the state’s general revenue is about $65 million. You’ll find that you’re actually saving a lot of money because the federal government is picking up more tabs. This reduces the dependence on national revenues. But once the public health emergency is over, that swing will revert to a 70/30% split versus her current 77%. So there are a lot of financial ramifications for how to register and rewind it. ”
Of the more than one million Arkansas who have Medicaid, approximately 477,000 are children, Irvin said. Legislators need to know aspects of health policy where legitimate registrants will be directed and what the financial implications will be. From calculations shared by Irvin, the state could be seeing hundreds of millions of dollars in general revenue.
Expansion of Medicaid – formerly a private option, Arkansas Works, now called AR Homes after changes made in the 2021 Legislative Assembly – announced at the 94th Arkansas General Assembly another major healthcare and funding hurdle for Irvin said he hasn’t had much dialogue with Gov. Sanders on the issue because the new governor’s focus is on education and criminal justice reform. I am not claiming a position.
But expanding Medicaid requires a three-fourths majority in both houses. It has historically been included in the Department of Human Services’ total budget, but Congressman and former Gov. Asa Hutchinson always required multiple attempts to get 75% passage.
Irvin said AR Home was “thoughtful and purposeful” and improved well-being.
“This is the health care policy that has so far been lacking to truly improve health outcomes. If you’re not acknowledging the health consequences, you need to shift gears, upshift, and change,” he said. she said.
Some of the overhauled Medicaid expansion programs are helping young mothers and children, veterans, and those in foster homes, says Irvin. leaves a large hole in the
Health services and coverage are important goals, but the fiscal impact of scrapping or canceling the AR Home Medicaid Expansion Program could leave a billion-dollar hole in the state budget. With traditional Medicaid federal funding set to return to pandemic levels of 77% to 70%, the Medicaid expansion under the Affordable Care Act took up 90% of the medical tab and the remaining 10%. % paid by the State of Arkansas. A reversal or closure of that program to traditional Medicaid could drop the federal burden to the 70% level.
“Everything works together,” says Irvin.
You can watch the full interview with Senator Irvin in the video below.
https://www.youtube.com/watch?v=CFRMB2HYk-U
