Governor Pushes Back Against Proposed Rate Hikes in Arkansas

Arkansas insurance firms have proposed significant rate increases for 2026, drawing criticism from Governor Sanders.

Each year, insurance companies suggest adjustments to their rates based on how market trends align with healthcare costs. Still, the impending end of tax credits from the US Rescue Plan Act and the Inflation Reduction Act by December is introducing new Medicaid labor requirements and insurance law changes in the current legislative session. As a result, Arkansas insurers are planning to raise their rates, which they intend to implement in 2026.

In particular, Centene is seeking a 54% rate increase, Arkansas Blue Cross Blue Shield has requested a 25.5% increase, and Ambetter is looking for around a 20% jump. These changes will impact individual market plans available on the federal Healthcare.gov Marketplace, affecting more than 350,000 residents in Arkansas.

5News reached out for comments but did not hear back from Centene or Ambetter. Arkansas Blue Cross Blue Shield did share a statement.

“The requests made by Arkansas Blue Cross and Blue Shield align with what other insurers have proposed nationally,” the statement indicated.

“We want to reassure Arkansans that we’re not downplaying the significance of these proposed hikes. As a non-profit mutual insurance company based in Arkansas, we recognize that healthcare costs can be overwhelming for families and businesses. That said, these costs have been largely driven by rising expenses and increased usage of health services over recent years.”

This response follows Governor Sarah Huckabee Sanders’ sharp remarks regarding the proposed increases.

“Arkansans are fed up with outrageous bills from billion-dollar insurance companies, and my administration will not let them exploit our communities. There’s simply no justification for such drastic year-over-year premium increases. It’s unjust and against Arkansas law,” Sanders stated.

The governor urged the Arkansas insurance commissioner to reject any excessive or discriminatory rate hikes. “I expect the commissioners to uphold the law, prevent these outrageous increases, and safeguard the interests of Arkansans,” she added.

5News also sought an interview with the Arkansas Insurance Bureau for insights from the commissioner, but a spokesperson declined the request.

The Arkansas Department of Insurance is expected to decide by August 13th whether to approve or deny these proposed rate increases, with the final rates set to be disclosed on November 1st, ahead of the 2026 open enrollment period.