Sanders Negotiates Insurance Rate Increases Down by 35.8%

Says, 'More work remains, but this is a good starting point and shows that when we stand up to major insurance companies, we can win tangible benefits for the people of our state'

LITTLE ROCK, Ark. - After announcing in August that her administration was disapproving health insurance rate increases as high as 54.2%, Governor Sanders today announced that she has secured average rate increases that are 35.8% lower than previously proposed.

"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 included in this announcement are managed by Centene and Arkansas Blue Cross Blue Shield and are available on the federally managed healthcare exchange established by the Affordable Care Act. They cover 308,662 Arkansans.

Most beneficiaries will be able to avoid the full rate increase through subsidies offered through the Affordable Care Act. By negotiating lower rates, the Governor was able to save money for both beneficiaries and the taxpayers who pay their subsidies. These new rates will go into effect on January 1st, 2026.

As part of her broader efforts to lower healthcare costs and increase access for the people of Arkansas, Governor Sanders signed legislation making Arkansas the first state in the nation to ban Pharmacy Benefit Managers (PBMs) from simultaneously owning pharmacies. In an op-ed published in the New York Times, the Governor explained how PBMs inflate drug prices and reduce patient access.

The Governor also established the Arkansas Strategic Committee for Maternal Health in 2024, creating a statewide effort to reduce maternal mortality and improve healthcare outcomes for moms and babies. Through that group's work, the Governor championed and signed the Healthy Moms, Healthy Babies Act in 2025, directing more than $45 million annually to improve maternal health outcomes.

The Governor's August 6^th announcement on insurance rates is available here. This represents the first time Arkansas has rejected a proposed insurance rate increase for being excessive.

A full breakdown of health plans and rate changes is available here.

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