The Centers for Medicare and Medicaid Services (CMS) have verbally denied Arkansas’ request to renew the Arkansas Health and Opportunity for Me (ARHOME) program, placing the future of the Medicaid-funded initiative in the hands of state lawmakers.
ARHOME, which began as a five-year waiver in 2022, uses federal Medicaid funds to purchase private health insurance for low-income residents aged 19 to 64 who meet certain poverty threshold criteria. The program currently provides health coverage to approximately 200,000 Arkansans, but its waiver is set to expire this year following CMS’s denial of renewal.
With federal approval off the table, attention now turns to the Arkansas Legislature to determine how to maintain or modify the program. Shane Speights, dean of the New York Institute of Technology College of Osteopathic Medicine at Arkansas State University, said the state must act decisively to ensure continued coverage. "If we can’t move this program forward from the federal level, what do we do on the state side to ensure these individuals have some sort of coverage?" Speights said.
To provide temporary stability, the Arkansas Department of Human Services (DHS) is attempting to secure an extension of the existing waiver until the legislature reconvenes in January. However, as of now, CMS has not approved that request. If the extension is not granted, state officials and lawmakers could be forced to develop a solution on an accelerated timeline.
Gavin Lesnick, chief of communications for DHS, noted in a statement that significant changes to the program are inevitable, but eligibility is not expected to be affected. "These changes will not be immediate, and no action is needed from beneficiaries at this time," Lesnick explained. "It is important to note the changes will center on service delivery, not on eligibility." DHS pledged to coordinate with partners to craft a sustainable approach moving forward.
State legislators are expected to engage in extensive discussions about the program’s future. The Hospital, Medicaid, and Developmental Disabilities Subcommittee will meet on August 17, when DHS officials will present a detailed report and outline potential options.
Speights stressed the importance of proactive planning in case no extension is granted. "If we don’t see an extension on the waiver, then our state legislature is going to be tasked with figuring out how to bridge that gap," he said.
For now, the approximately 200,000 Arkansans relying on ARHOME must wait for state leaders to determine the program's next steps.