Ark. DHS: $372M in savings from Medicaid expansion
July 18, 2012 at 1:07 AM CDT - Updated June 27 at 6:09 PM
LITTLE ROCK, Ark. (AP) - Arkansas Human Services officials say the state would save $372 million over the next several years if it goes along with an expansion of Medicaid under the federal health care law.
The department released new estimates late Tuesday afternoon on the costs of expanding Medicaid eligibility. Gov. Mike Beebe has said he's leaning toward going forward with the expansion.
The federal government would pay the full tab for the Medicaid expansion when it begins in 2014. But after three years, states must pay a gradually increasing share that tops out at 10 percent of the cost.
The department said that Arkansas' annual net cost would eventually reach $4 million in 2021. That's after being offset by savings because of the federal law, such as a reduction in uncompensated care.
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