Traditional Medicaid is a straight “fee for service” system where actual services performed are paid for with taxpayer dollars. For example, a doctor visit cost, prescriptions, or mental health services are used by the patient and then Medicaid pays the cost. Medicaid Expansion is where health insurance plans are purchased (and owned by the state of Arkansas) with taxpayer money and a monthly premium is paid. The monthly premium (now averaging over $500 a month) is paid to insurance companies regardless of whether any health services are ever rendered.
Both programs are 100% paid for with taxpayer money. Under traditional Medicaid a taxpayer’s federal dollars pay 70% of the cost and a taxpayer’s state dollars pay 30% of the cost. Under Medicaid expansion a taxpayer’s federal dollars will pay (starting 2020) for 90% of the costs and a taxpayers state dollars will pay 10%.
This quiz highlights the new numbers of Medicaid Spending in Arkansas.