Signed by Governor Mike Beebe

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that establishes a program for certain individuals to purchase private health insurance with state and federal funds.

Highlights:

• Establishes the “Health Care Independence Program” which provides “eligible individuals” with cost sharing assistance for medical services and subsidies for health insurance premiums offered through the Health Insurance Marketplace (Sec. 1).

• Defines “eligible individuals” as those who meet certain conditions including, but not limited to, the following conditions (Sec. 1):
• The individual is between 19 and 65 years of age; and
• The individual’s income is equal or less than 138 percent of the federal poverty level.

• Requires the Department of Human Services to transition the following individuals to the Health Care Independence Program upon federal approval in the calendar year 2015 (Sec. 1):
• Qualifying children participating in the ARKids First Program Act; and
• Qualifying individuals covered by Medicaid with an annual income between 0 percent and 17 percent of the federal poverty line. 

• Requires the Department of Human Services to implement a strategy to inform certain Medicaid recipients who would be “better served” through participation in the Health Insurance Marketplace (Sec. 1). 

• Requires the Department of Human Services and the State Insurance Department to publish and administer rules for the Health Care Independence Program and submit any rules to the Legislative Council at least 30 days prior to the effective date (Sec. 1).

• Requires the State Insurance Department to offer at least 2 qualified health plans in each county in the state (Sec. 1).

• Requires a health insurance carrier that offers coverage for program eligible individuals to participate in the following Arkansas Payment Improvement Initiatives (Sec. 1):
• Provide an assigned primary care clinician;
• Provide support for patient-center medical home; and
• Provide providers with access to clinical performance data. 

• Specifies that the program will terminate within 120 days if the federal funding percentages fall below the following percentages (Sec. 1):
• 100 percent in 2014, 2015, 2016;
• 95 percent in 2017;
• 94 percent in 2018;
• 93 percent in 2019; and
• 90 percent in any year after 2020.

• Requires an eligible individual to acknowledge that the program is not a perpetual right or a guaranteed entitlement and is subject to cancellation upon appropriate notice (Sec. 1).

• Specifies that the program is effective until June 30, 2017 unless amended or extended by the General Assembly (Sec. 1).

• Requires the Department of Human Services to develop a program that utilizes Independence Accounts which would operate similar to a Health Savings Account for non-aged and non-disabled eligible individuals in the calendar year 2015 (Sec. 1).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes a program for certain individuals to purchase private health insurance with state and federal funds.

Highlights:

• Establishes the “Health Care Independence Program” which provides “eligible individuals” with cost sharing assistance for medical services and subsidies for health insurance premiums offered through the Health Insurance Marketplace (Sec. 1).

• Defines “eligible individuals” as those who meet certain conditions including, but not limited to, the following conditions (Sec. 1):
• The individual is between 19 and 65 years of age; and
• The individual’s income is equal or less than 138 percent of the federal poverty level.

• Requires the Department of Human Services to transition the following individuals to the Health Care Independence Program upon federal approval in the calendar year 2015 (Sec. 1):
• Qualifying children participating in the ARKids First Program Act; and
• Qualifying individuals covered by Medicaid with an annual income between 0 percent and 17 percent of the federal poverty line. 

• Requires the Department of Human Services to implement a strategy to inform certain Medicaid recipients who would be “better served” through participation in the Health Insurance Marketplace (Sec. 1). 

• Requires the Department of Human Services and the State Insurance Department to publish and administer rules for the Health Care Independence Program and submit any rules to the Legislative Council at least 30 days prior to the effective date (Sec. 1).

• Requires the State Insurance Department to offer at least 2 qualified health plans in each county in the state (Sec. 1).

• Requires a health insurance carrier that offers coverage for program eligible individuals to participate in the following Arkansas Payment Improvement Initiatives (Sec. 1):
• Provide an assigned primary care clinician;
• Provide support for patient-center medical home; and
• Provide providers with access to clinical performance data. 

• Specifies that the program will terminate within 120 days if the federal funding percentages fall below the following percentages (Sec. 1):
• 100 percent in 2014, 2015, 2016;
• 95 percent in 2017;
• 94 percent in 2018;
• 93 percent in 2019; and
• 90 percent in any year after 2020.

• Requires an eligible individual to acknowledge that the program is not a perpetual right or a guaranteed entitlement and is subject to cancellation upon appropriate notice (Sec. 1).

• Specifies that the program is effective until June 30, 2017 unless amended or extended by the General Assembly (Sec. 1).

• Requires the Department of Human Services to develop a program that utilizes Independence Accounts which would operate similar to a Health Savings Account for non-aged and non-disabled eligible individuals in the calendar year 2015 (Sec. 1).

Full Bill Text