Centene exits Arkansas Medicaid expansion program, citing funding challenges
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The exit represents how insurers are rejigging their businesses in advance of Medicaid work requirements, one analyst said. Centene is exiting Arkansas' Medicaid expansion program in 2027, citing funding challenges as states absorb steep cuts to Medicaid. Centene has decided not to renew its participation in Arkansas Health and Opportunity for Me, or ARHOME, the state's Medicaid expansion program created under the Affordable Care Act in 2013, a spokesperson confirmed, calling it a "difficult decision." ARHOME covers Arkansans aged 19 to 64 with income up to 138% of the federal poverty level. The state uses Medicaid funding to buy those enrollees coverage in plans through the ACA exchanges, unless they're medically frail, in which case they stay in traditional fee-for-service Medicaid. ARHOME is a relatively small slice of Centene's business. The program represents about about 77,000 members and around $400 million to $700 million in premiums for Centene, according to state enrollment data and estimates from J.P. Morgan analysts. In comparison, the St. Louis-based insurer has 12.4 million Medicaid members and brings in $23 billion in annual premiums from the safety-net program overall. But Centene's exit is notable for signaling how Medicaid insurers are reconsidering their state footprints in advance of looming work requirements, J.P. Morgan analyst John Stansel wrote in a...
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