Optumas Memo To Arkansas DHS Regarding Methodology & Assumptions Supporting Private Option Cost Estimates

On April 22, 2014, actuarial firm Optumas reported  on the methodology and assumptions underlying its estimates for the cost of implementing the Arkansas private option. Optumas was contracted by the Arkansas Division of Medical Services (DMS) to provide assistance with actuarial analyses and projections related to the implementation of the private option. Optumas created two primary cost estimates. The first was an estimate of private option costs utilizing Medicaid data. The second estimate was a budget neutrality calculation, which is a standard component of an 1115 Waiver. The private option uses an 1115 waiver from the Centers for Medicare and . . .