On September 27, 2013, the Centers for Medicare and Medicaid (CMS) approved Arkansas’ request to begin a Private Option demonstration. Arkansas is the first state to receive approval for a “private option” as an alternative to Medicaid expansion.
Remember my “A Modest Proposal?” Providing Medicaid recipients with private insurance….
Basically, Arkansas will accept federal money for Medicaid expansion, but instead of expanding Medicaid, Arkansas will purchase private insurance for these “newly eligible” Medicaid recipients, adults who make $15,280 or less. Those individuals who earn up to 138 percent of the poverty line — or $15,415 per year — would purchase subsidized private insurance through the state’s insurance exchange. From my understanding, the federal funds will cover the newly eligible recipients’ premiums and any co-pays above the co-pays set by statute.
Coverage is to begin January 2014, although enrollment opened today.
Arkansas estimates that 225,000 individuals will be eligible for the demonstration project. Iowa has submitted a similar request for a “private option” program. CMS has not yet ruled on Iowa’s request. Likewise, Pennsylvania Governor Corbett submitted a request to CMS based of the Arkansas model.
It seems that some Republican governors are thinking outside the box to provide health care coverage for additional Medicaid recipients without merely providing the newly eligible simply a Medicaid card. Because, remember, receiving health care is completely different from receiving health insurance. Having insurance does not always allow Medicaid recipients to receive health care. Obviously, many provider refuse to accept Medicaid. But these newly eligible Medicaid recipients will have health care…with private insurance…just like I have…or you have….
And I ask you…What is more important….handing a person a Medicaid card?…Or providing that person with quality health care?
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