Medicaid expansion in Arkansas

The Arkansas Minority Health Commission (AMHC) and its Board of Commissioners announce its support of Medicaid expansion to more than 250,000 additional citizens in the state of Arkansas.

Education, economic development, environmental issues and poverty are inextricably linked to the health of all populations. Arkansans have poor health status as documented by national health rankings. Minority Arkansans bear a disproportionate portion of poor health experiencing higher death rates from infant mortality to cancer, diabetes, heart disease, stroke and HIV. Minority Arkansans are more likely to be uninsured.  This has enormous implications for all Arkansans.

The AMHC is a witness to the individual and collective stories that illustrate what these statistics represent. These stories include the unmet need in the community for acute care, medications, preventive care and mental health services. Currently, it is estimated that 29.3% of Arkansans age 18-64 have no health insurance. In some counties, the uninsured makes up 42% of the population.

 “Although the picture of health status and disparities in Arkansas seems bleak and our challenges many, there is great opportunity to significantly invest and improve the health of all Arkansans.  The landmark Patient Protection and Affordable Care Act (ACA) has the potential to fundamentally reshape the US health care system, improve the health of the state and improve the health of racial and ethnic minorities,” said Idonia Trotter, Executive Director of the Arkansas Minority Health Commission.

The impact of the ACA on minority communities and those most in need is yet to be realized. Benefits to date have gone to those that have previously had some type of health care coverage. Examples include free preventive screenings, helping with medication costs for those with Medicare; banning insurance companies from dropping people from coverage once they become ill; allowing young adults to stay on parents insurance until age 26; and providing small business tax credits for health coverage to employees.

The expansion of Medicaid to 138% of the federal poverty level would represent a major benefit to Arkansas. Individuals and families of 4 making $15,145 or $31,809 per year respectively, could have health coverage granting entire families access to medical services.  This expansion could reach an estimated 250,000 newly eligible Arkansans.

Impact of Medicaid Expansion

Medicaid expansion for children has already demonstrated benefits for Arkansans. Specifically, AR Kids First now provides health insurance for children up to 250% of the federal poverty level and has improved the health of children in our state. The number of child and teen deaths has decreased by 21 percent since 2005.

According to the Urban Institute and the Robert Wood Johnson Foundation, the newly eligible in Arkansas are projected to be 35-54, male, adults without children, and White. By expanding access to health coverage to the newly eligible, all Arkansans will benefit. Minorities make up 22.8% of the state’s population yet, they are projected to make up 32.3% of the newly eligible Medicaid population.

A recent study, published in the New England Journal of Medicine examined the effect of state Medicaid expansion in the states of New York, Maine and Arizona as compared to neighboring states without expansion. Medicaid expansion was associated with improved coverage, access to care, and improved self –reported health status. Most importantly, all-cause mortality decreased with a relative reduction of 6.1% over a 5 year period.  These reductions were the greatest in older adults, nonwhites and residents of poorer counties.

Arkansas is significantly different from these states, but the demographic and economic condition of Arkansas may increase the benefit to our population. If we apply the results to Arkansas  for the comparable age-race groups using data from 2009, the Medicaid expansion could potentially result in almost 500 lives saved over 5 years, as well as increased access to medical services and improved health status for many more. The effect would ripple throughout the community and the economy.

AMHC recognizes the economic realities of the state and the nation. Extending Medicaid to 250,000 Arkansans will require state investment overtime. Under the ACA 100% of costs through 2015 and 90 percent of costs through 2020 will be covered by the federal government. While a 10% investment by 2020 is challenging, it is a wise investment in the people of Arkansas.  

The future of Arkansas is tied to the health of its citizens. The health of all Arkansans must improve if we are to realize our full potential as a state and contribute to the resolution of the challenges facing our nation. Medicaid expansion under the Patient protection and Affordable Care Act represents an investment in the future health and economic growth of the state.  It will especially benefit those most in need. 

 “With the Medicaid expansion, more people will be able to choose life for themselves, healthier families, stronger communities and economic vitality.  Extending Medicaid to 250,000 Arkansans is an investment Arkansas cannot afford to pass over,” stated Christine Patterson, AMHC Board Chair.