Arkansas Gov. Asa Hutchinson on Thursday asked the state Legislature to continue the private option for Medicaid through the end of 2016 to keep insurance coverage for more than 200,000 low-income residents.
However Hutchinson, who took office in January, has asked for the creation of a health reform task force to make recommendations for an alternative healthcare model to replace the private option in 2017. Hutchinson said the new plan should cover everyone currently covered by the private option, but be more cost-effective.
The private option uses federal funds to purchase private insurance for the poor. It came about two years ago as an alternative to Medicaid expansion under the federal Affordable Care Act, and has since sharply divided Republicans in the state.
Reauthorizing the program requires a three-fourths majority in the House and Senate.
Republicans hold a majority in the Legislature, with Hutchinson taking office this month from a Democratic predecessor who backed the private-option approach to Medicaid expansion.
Twitter: @SusanMorseHFN
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