Arkansas and the Affordable Care Act

ESSENTIAL HEALTH BENEFITS*

Affordable Care Act Arkansas by EHG all of the essential health benefits required by the healthcare law. These include ambulatory patient services, emergency services, hospitalization, pregnancy and maternity care, mental health and substance use disorder treatment, prescription drugs, rehabilitative and habilitative devices and therapies, laboratory services and preventive and wellness visits. A primary care provider (PCP) is a doctor who directly provides or coordinates a range of healthcare services for a patient, such as a family physician, general practitioner, internal medicine doctor or pediatrician.

The inflow of federal dollars from the ACA results in an increase in economic activity and employment in Arkansas. The state’s GDP will increase by the same amount as the increased spending. The state’s unemployment rate will also decrease, as will the number of uninsured citizens. The resulting tax revenue from the influx of additional dollars will decrease Arkansas’s deficit by approximately $2 billion over 10 years.

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This assessment uses RAND’s COMPARE model to estimate the impact of the ACA in Arkansas, based on data and literature. The COMPARE model identifies the new money coming into the state as a result of the expansion of Medicaid and the resulting increase in insurance coverage. This includes the inflow of funds from reducing the individual mandate penalties, health insurance premium taxes and reinsurance fees. The outflow of dollars from Medicare cuts are identified by taking CBO’s estimate of the corresponding cut in federal spending and scaling it based on Arkansas’s share of national Medicare spending.

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