HB1219 Summary

• Appropriates $26.6 million for DHS Division of Medical Services operations and $1.97 million for the Office of Medicaid Inspector General for fiscal year 2013-2014, including salaries for 322 regular employees and 35 inspector general staff.

• Appropriates $5.35 billion in grant payments for Medicaid services including private nursing home care ($687.8 million), hospital and medical services ($3.9 billion), prescription drugs ($373.1 million), and ARKids B program ($137.3 million).

• Creates the Health Care Independence Act of 2013 establishing a program to provide private insurance options for low-risk adults ages 19-65 earning up to 138% of federal poverty level through health insurance marketplace premium assistance.

• Transfers funds exceeding $100 million from Arkansas Healthy Century Trust Fund to Medicaid Expansion Program Account and deposits tobacco settlement funds ($22.8 million) directly to Medicaid Expansion Program Account.

• Requires legislative or Joint Budget Committee approval for any proposed Medicaid rate methodology changes and establishes quarterly reporting on program enrollment, patient experience, and economic impact.