Little Rock, Arkansas – In a significant move aimed at easing financial pressure on Arkansas families, Governor Sarah Huckabee Sanders has announced a major reduction in planned health insurance rate hikes for 2026. After previously disapproving proposed increases as high as 54.2% in August, the governor revealed that her administration successfully negotiated average rate increases that are 35.8% lower than initially requested by insurance companies.
“Healthcare costs are growing out of control, and Arkansans are fed up. As part of my administration’s broader strategy to expand access and lower costs, we were able to negotiate down planned increases, easing the burden on both beneficiaries and taxpayers,” said Governor Sanders. “More work remains, but this is a good starting point and shows that when we stand up to insurance companies, we can win tangible benefits for the people of our state.”
The six health plans affected by the new rates are administered by Centene and Arkansas Blue Cross Blue Shield and are sold through the federally managed Affordable Care Act marketplace. Collectively, these plans cover more than 308,000 Arkansans.
Rate Reductions Affect Tens of Thousands of Residents
The new agreement, which goes into effect January 1, 2026, will have a direct impact on a wide range of consumers:
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Health Advantage (BCBS), covering 25,151 people, saw its proposed 20.90% rate hike reduced to 12.44%, a decrease of 40.48%.
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USAble HMO (BCBS), covering 32,867 Arkansans, had a 34.29% proposed increase lowered to 20.77%, down 39.43%.
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USAble Mutual (BCBS), with 95,301 insured, went from a proposed 25.77% hike to a 16.85% final increase, down 34.61%.
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QualChoiceLife (Centene), serving 35,823 individuals, is the only plan with an increased rate above initial projections, rising from 25.40% to 29.80%.
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Celtics Insurance Company (Centene) and QCA Health Plan (Centene), each with 72,509 enrollees, both had their proposed 42.50% hikes reduced to 26.10%, a 38.59% reduction.
The weighted average across all plans shows a drop from a 34.5% proposed increase to 22.21%, resulting in an average reduction of 35.63%.
While most Arkansans will still face premium increases, the availability of subsidies under the Affordable Care Act will shield many beneficiaries from the full financial burden. Lower negotiated rates also mean that less federal funding will be required to subsidize premiums, benefiting taxpayers as well.
Part of a Broader Push to Reform Healthcare in Arkansas
This move is just one part of Governor Sanders’ larger plan to make healthcare more affordable and accessible across the state. In a landmark step earlier this year, she signed legislation making Arkansas the first state in the country to ban Pharmacy Benefit Managers (PBMs) from owning pharmacies — a reform aimed at curbing inflated drug costs and improving transparency.
In an op-ed published in The New York Times, Governor Sanders explained how PBMs manipulate pricing and access to medications, ultimately hurting patients and driving up costs.
Beyond cost-saving measures, her administration has also focused on improving maternal health. In 2024, she established the Arkansas Strategic Committee for Maternal Health to address rising maternal mortality rates. That effort culminated in the passage of the Healthy Moms, Healthy Babies Act in 2025, which allocates over $45 million each year toward supporting better health outcomes for mothers and newborns across the state.
A Historic First in Arkansas Insurance Oversight
The Governor’s office emphasized that this is the first time in Arkansas history that a proposed insurance rate increase was formally rejected for being excessive. The action sets a precedent and signals a more aggressive stance toward protecting consumers from unjustified price hikes.
More detailed information about each plan and its rate changes can be found through the Arkansas Insurance Department.
With this bold step, Governor Sanders reinforces her administration’s commitment to health policy reform, aiming to deliver measurable outcomes for both working families and taxpayers across the state.
