LITTLE ROCK — Arkansas has received permission from the federal government to use federal funding to reinstate at least $7 million in monthly premiums for people enrolled in the private option that it previously recouped from insurance carriers, the state Department of Human Services said Tuesday.

LITTLE ROCK — Arkansas has received permission from the federal government to use federal funding to reinstate at least $7 million in monthly premiums for people enrolled in the private option that it previously recouped from insurance carriers, the state Department of Human Services said Tuesday.


The state recouped the premiums because processing delays and challenges with state and federal eligibility systems resulted in retroactively terminated coverage, even for some enrollees who were still considered eligible under federal rules, DHS said in a news release.


Restoring the premiums will make it unnecessary for the carriers to try to recoup money from doctors and others who provided care in good faith, the agency said.


DHS said it will work with the affected insurance carriers to determine how and when the reinstatements will be made. The agency said it has already made policy changes to prevent retroactive terminations in the future.


Gov. Asa Hutchinson asked U.S. Department of Health and Human Services Secretary Sylvia Burwell for permission to use federal money to reinstate the premiums when he met with her in Washington last month.