Ark. to use federal funding for private insurance

Arkansas became the first state on Friday to win federal approval to use Medicaid funding to purchase private insurance for thousands of low-income residents under the federal health care law, clearing the way for a model that several other states are eyeing, according to the Associated Press.

Instead of expanding Medicaid's enrollment, Arkansas has been approved by the Centers for Medicare and Medicaid Services to implement a private option.

Under the option, Arkansas will use federal money allocated for Medicaid expansion to buy private insurance for some 250,000 eligible low-income residents, according to the report.

Read more at the Associated Press.