CMS decision leaves Arkansas’ Medicaid expansion program in jeopardy

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CMS verbally confirmed its denial of the waiver enabling Arkansas’ Medicaid expansion program, the Arkansas Health and Opportunity for Me program, leaving more than 200,000 residents in limbo.

Republican Gov. Sarah Huckabee Sanders’ office confirmed the update to Becker’s Aug. 4. The governor is expecting a formal notice in writing shortly.

A spokesperson for the Arkansas Department of Human Services told Becker’s the denial was due to the ARHOME waiver not complying with upcoming budget neutrality rules from HR 1. 

The governor’s administration is in talks with CMS about temporarily extending ARHOME to ensure a smooth transition as legislators decide next steps.

“Looking ahead to the next legislative session, CMS has provided the state with an opportunity for bold, conservative healthcare reform, and the governor will work with her partners in the legislature to build a sustainable model that maintains the same high quality of care and saves taxpayer dollars,” a spokesperson from the governor’s office said.

The current waiver expires at the end of 2026. As of July 1, about 202,000 people were enrolled in ARHOME.

In 2022, ARHOME replaced Arkansas Works, the previous expansion program. The state established ARHOME through a section 1115 waiver, which requires periodic renewal approval, rather than a state plan amendment.

“We look forward to robust discussions with a wide range of partners as we develop the next evolution of this program in a way that is functional, practical and sustainable,” the DHS spokesperson told Becker’s. “While it’s too early to know specifics of how this new approach will look, our commitment to connecting eligible Arkansans to effective healthcare will remain our guiding principle at the core of this work.”

Arkansas Blue Cross and Blue Shield and Centene’s Ambetter provide insurance through ARHOME.

“Arkansas Blue Cross and Blue Shield remains committed to working closely with the Arkansas Department of Human Services (DHS) and all stakeholders to ensure the ARHOME program continues to provide access to healthcare for eligible citizens of Arkansas in 2027 and beyond,” the insurer said.

Becker’s contacted Ambetter and will update this story if more information becomes available.

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