SB1020 Summary

• Creates the Health Care Independence Act of 2013 to reform Arkansas Medicaid by enrolling low-risk adults (ages 19-65 earning up to 138% of federal poverty level) in private health insurance through the Health Insurance Marketplace instead of traditional Medicaid.

• Requires the Department of Human Services to seek federal waivers and Medicaid State Plan Amendments to implement the program, with payments made directly to qualified health plans for premiums and supplemental cost-sharing for eligible individuals.

• Establishes requirements for participating insurance carriers including maintaining medical loss ratios of at least 80% (individual/small group) or 85% (large group) and participation in Arkansas Payment Improvement Initiatives.

• Allows for Independence Accounts (similar to Health Savings Accounts) beginning in 2015 for non-aged, non-disabled participants, with remaining funds reverting to participant control as an incentive for responsible healthcare use.

• Program terminates automatically within 120 days if federal medical assistance percentages drop below 100% in 2014-2016, below 95% in 2017, or below specified thresholds in subsequent years; program expires June 30, 2017 unless extended by the General Assembly.