(LITTLE ROCK, Ark.) — The Arkansas Department of Human Services (DHS) will launch a soft implementation of new work and community engagement requirements for many Medicaid beneficiaries starting July 1, but no penalties will be in effect until January 1, 2027.

Under the new program, healthy adults enrolled in Arkansas Health and Opportunity for Me, or ARHOME, must work, volunteer, or go to school for at least 20 hours per week (80 hours per month). States that have expanded Medicaid are required under the federal budget bill signed into law last year to implement work and community engagement programs by Jan. 1, 2027. DHS will launch the full requirement on that date, and Arkansans who are not exempt and who do not comply could lose their coverage or be denied at application beginning then. 

“Most Arkansans work hard to pay for their health insurance but for too long, Arkansas has subsidized healthy adults to stay on the sidelines. That’s a backward, broken system, and we will end it under this administration,” said Governor Sarah Huckabee Sanders. “I’m grateful to President Trump and congressional Republicans for paving the way for us to implement this work requirement and look forward to the opportunity to bring smaller government, greater prosperity, stronger families, and better communities to Arkansas.”

The work and community engagement requirement will apply to Arkansans aged 19 to 64 enrolled in ARHOME unless they are exempt. Exempt categories include pregnant and postpartum women, disabled veterans, caregivers, and those with special medical needs. Approximately 217,000 Arkansans were enrolled in ARHOME as of Feb 1.

The soft implementation will help the state further refine the program, educate beneficiaries, partners, and providers, identify areas where improvement is needed, and ensure that all ARHOME enrollees are aware of the new requirements before they go into effect fully. 

“Finding a job brings purpose, meaning, and economic independence, which we know leads to better health,” said DHS Secretary Janet Mann. “We want all Arkansans to be engaged in their health and well-being, and this program is a key step that will help those served by our Medicaid expansion program improve their lives. This also helps ensure that our finite Medicaid resources support those who need them, and not those who could work but choose not to do so.”

Under the soft implementation starting on July 1, DHS will begin running automated processes to determine if beneficiaries are exempt, meeting, or not meeting the community engagement requirement. While no penalties will be in place for 2026, beneficiaries will be notified of their status based on those automated checks so they can become better familiar with the requirement and ensure they are positioned to meet the requirement in 2027.

DHS is working with partners including sister agencies, and is in the process of obtaining a vendor for a customer service center that will perform outbound communications including calls to verify community engagement status when the automated processes do not confirm it. That vendor will begin reaching out to beneficiaries in December leading up to the full launch of the program, and beneficiaries will also be able to report activities by phone, online, or at their local DHS county office. Starting on Jan. 1, 2027, beneficiaries who do not meet the community engagement requirement will have 30 days to show compliance before their Medicaid benefits are suspended. 

DHS remains in communication with the Centers for Medicare and Medicaid Services (CMS) and expects additional guidance as specific program policies are developed and implemented. DHS will communicate updates to beneficiaries through a variety of methods in the coming weeks and months. To ensure that beneficiaries receive important program information, they should ensure their mailing address, phone, and email are up-to-date, and they can sign up for email and text alerts in addition to mailed notices online through Access.Arkansas.gov. Additional details about updating contact information are posted at ar.gov/update. 

In January of last year, DHS announced plans to implement a work and community engagement program called Pathway to Prosperity. That waiver was pending with CMS when the new requirements from the federal budget bill were signed into law. This new approach preserves the overall goal of Pathway to Prosperity to help Medicaid beneficiaries build skills and attain economic independence while also meeting all the requirements outlined in the federal law.