Arkansas is seeking CMS’ approval of a two-year extension for the Section 1115 waiver enabling the state’s Medicaid expansion program, Arkansas Health and Opportunity for Me.
Arkansas Department of Human Services Secretary Janet Mann sent CMS a letter Aug. 5 detailing the request. The letter follows CMS’ denial of the waiver’s renewal past 2026, affecting more than 200,000 residents. The denial stemmed from HR 1’s upcoming budget neutrality rules.
Ms. Mann said an extension would “provide sufficient time to wind down the existing program while simultaneously designing and implementing a new Medicaid delivery system for beneficiaries.”
“We believe this two-year extension is a prudent step that will allow us to successfully work alongside our partners in the legislature,” the letter said.
An Arkansas DHS spokesperson told Becker’s Aug. 10 that the expansion population would still exist beyond 2026 if the waiver is not renewed, but the program’s service delivery would need to transition to a fee-for-service model at least temporarily.
The current waiver, which requires periodic renewal, allows Medicaid dollars to be spent on private health insurance. Arkansas Blue Cross and Blue Shield and Centene’s Ambetter provide insurance through ARHOME, but Ambetter will exit in 2027.
Ms. Mann also said DHS is fully committed to launching community engagement requirements by the Jan. 1, 2027, deadline, and moving to a new program that same day “could distract from those efforts.”
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