Government auditors say Arkansas' private option Medicaid plan will cost taxpayers an extra $778 million over the next three years rather than being "revenue-neutral" to the federal budget.
The Department of Health and Human Services disagreed with the findings, which were released Monday. It said the federal Government Accountability Office didn't take into consideration major program changes within Arkansas' Medicaid system.
A spokesman for Gov. Mike Beebe said the report was prepared without anyone at the GAO contacting Arkansas for its input. Spokesman Matt DeCample said the state should expect higher startup costs as 200,000 people enter the health care system, but that costs eventually will be lower as the population becomes healthier.
Under the plan, Arkansas will use Medicaid funds to provide private health insurance for poor people.
