Arkansas House Votes Against Reinstallation of Medicaid Assets Test

The Arkansas House on April 2 voted 48-40 against a measure (HB 2629) to reinstate an assets test for ARKids A, the state's traditional Medicaid program, the Arkansas Democrat-Gazette reports. The bill, sponsored by Rep. David Haak (R), also would have raised the assets limit to $5,000 "and allowed families to omit an automobile" from the assets test. Haak offered the measure in response to a recently passed (though yet to take effect) law (SB 362) eliminating the assets test that became law without Gov. Mike Huckabee's (R) signature. The governor urged legislators to consider Haak's bill as a "reasonable alternative" to eliminating the assets test, as Huckabee sought to draw a distinction between ARKids A, which offers "comprehensive" benefits, and ARKids B, the state's Medicaid waiver program for children from higher-income families that offers fewer benefits than ARKids A and charges a small copayment (ARKids A does not charge copays). Haak, "echo[ing]" Huckabee's arguments, said that an assets test was needed for ARKids A "to ensure that poor families who apply for the wider package of benefits truly deserve them." Haak added that removing the assets test will cost the state Department of Human Services $600,000 in the first year of implementation and $1.5 million the year after, with the cost expected to increase as more families are enrolled in ARKids A. He said his bill would cost only $475,000 in the first year and $658,000 the next, while making eligible 55% of the roughly "2,340 children per year who are in families that would qualify [for ARKids A] except for the current assets limit"; the remaining children could enroll in ARKids B, which Haak called a "safety net" program. However, Rep. Gary Biggs (D), lead House sponsor of the bill eliminating the assets test, responded by asking the House, "Do we want to help all the children or help 55% of them? Vote your conscience. My conscience tells me to help all the children." Prior to the passage of SB 362, Arkansas was one of only eight states to impose assets testing for traditional Medicaid (Rowett/Wickline, Arkansas Democrat-Gazette, 4/3).