HB 1965 Summary

• Creates the Healthcare Reform Act of 2013 to redesign Arkansas's Medicaid program using private insurance plans with Independence Accounts for "low-risk" eligible individuals instead of traditional government-operated Medicaid.

• Establishes a Health Insurance Marketplace where the state pays premiums and cost-sharing subsidies to private insurers for eligible individuals earning up to 138% of federal poverty level who are U.S. citizens residing in Arkansas for at least 5 years.

• Requires the Department of Human Services to apply for federal waivers to eliminate various Medicaid requirements including state-wideness, freedom of choice, and mandatory services to allow the state operational flexibility over program design.

• Creates Independence Accounts funded by the state that recipients can use for healthcare expenses, employment training, and education costs, with funds rolling over annually to incentivize personal responsibility and healthy behaviors.

• Sets the program's effective date as June 30, 2017, with automatic termination if federal medical assistance percentages drop below specified thresholds (100% in 2014-2016, declining to 90% by 2020).