Bill Eliminating Assets Test For Arkansas’ Traditional Medicaid Program Clears House

The Arkansas House of Representatives on Feb. 27 approved a bill that would eliminate the state assets tests eligibility requirement for ARKids A, the state's traditional Medicaid program, the Arkansas Democrat-Gazette reports. The bill (SB 362), which gained approval from the state Senate earlier this month, passed the House 73-15 (Rowett/Wickline, Arkansas Democrat-Gazette, 2/28). As one of only nine states that requires an assets limit for traditional Medicaid recipients, Arkansas' limit varies by family size. For example, a single parent, one-child family may have $3,000 in assets. However, certain items do not count against the limit, for example, families may have up to $1,500 of equity in one automobile. While ARKids A has the assets test, the state's Medicaid waiver program, ARKids B, does not. The waiver program, however, offers fewer services and charges a "small" copayment. Supporters of the bill say that imposing an assets test on the traditional Medicaid program "discriminates against families with negligible income." State Sen. Jon Fitch (D), who sponsored the Senate version of the bill, said the test put an "unreasonable barrier" on families who need services offered under traditional Medicaid. He added, "I think it would be unconscionable for us to say 'Sorry, you can't [enroll], because ... you own two cars, but your income level is zero because you've been put out of work." The state Department of Human Services, however, is defending the assets test as "legitimate," as ARKids A offers 21 services that the waiver program does not. In addition, the department said the bill would cost the state $2.1 million over two years. Ruth Whitney, director of the department's Division of County Operations, said that if the assets limit is removed, costs would increase and families with "substantial assets" would enroll their children in traditional Medicaid (Rowett, Arkansas Democrat-Gazette, 2/23). Rep. David Haak (R) said, "We need to raise the assets limit, which would net out folks trying to abuse the system. Keep (ARKids A) reserved for those who do need the help," he said. Haak repeated the example cited by the department last week of one family that had $340,000 in certificates of deposit who attempted to qualify for traditional Medicaid but were denied due to the assets test (Rowett/Wickline, Arkansas Democrat-Gazette, 2/28) But Fitch said that Haak's example is "isolated" and "egregious." According to the state, an estimated 2,340 children per year are in families that would qualify for traditional Medicaid coverage, if not for the assets limit. The number of families who qualified for the traditional program has increased 36% since the state began a joint application process for both programs last August (Rowett, Arkansas Democrat-Gazette, 2/23). The bill now heads back to the Senate for concurrence in a House amendment that added sponsors to the measure. If the Senate accepts that amendment, the bill will go to Huckabee for his signature (Rowett/Wickline, Arkansas Democrat-Gazette, 2/28).