AR HB2177

Amends Arkansas Code § 20-77-127 to clarify administration of 42 C.F.R. § 435.725 regarding income deductions for institutionalized long-term care Medicaid recipients.

Allows deduction of certain income amounts to calculate recipient contributions to care costs and determine reductions in Medicaid payments to institutions.

Authorizes deduction of "necessary medical or remedial care" expenses recognized under State law but not covered by the Medicaid State Plan, known as "Medicaid income offsets," subject to reasonable agency-established limits.

Requires the Department of Human Services to create rules that identify eligible and ineligible expense types for Medicaid income offsets, define processes for determining medical necessity and coverage status, and set reasonable expense amount limits.

Establishes that the Department's rulemaking applies to 42 C.F.R. § 435.725 as it existed on January 1, 2017.