CMS has verbally denied Arkansas's request to extend ARHOME, the state's §1115 hybrid Medicaid expansion, with a formal written notice expected. KATV, reporting the Governor's office disclosure: "CMS has confirmed verbally that Arkansas' ARHOME waiver has been denied, and Governor Sanders anticipates a formal notice in writing soon."
The current waiver "expires at the end of the year," leaving "more than 200,000 low-income Arkansans insured through the program" without a defined pathway on January 1. On August 5, DHS Secretary Janet Mann wrote CMS asking for a two-year extension to build a replacement, with an operational rationale FQHC leaders in every work-requirement state should note: "Shifting to a new program on the same day we initiate the new work requirement policy could distract from those efforts."
DHS says CMS "has signaled it will support efforts to ensure a smooth transition." Two honest caveats. First, the sources disagree on cause: KATV ties the rejection to budget-neutrality enforcement and reports it was likely triggered when an insurer exited, while DHS states the insurer's withdrawal is unrelated to the denial — that disagreement is unresolved and is reported as such.
Second, Senate President Pro Tempore Bart Hester says he does not believe colleagues will support continuing expansion next session, and the Legislature does not convene until January — after the waiver lapses. Neither source names an Arkansas health center, so the FQHC consequence here is structural rather than reported: Arkansas health centers serve this population, and the fallbacks named by the state's former Medicaid director are fee-for-service, which pays less than ARHOME, or managed care, which he estimates needs at least 15 months to stand up.