Federal government approves Iowa plan to privatize Medicaid

Alex Hanson

The federal government has approved Iowa’s plan to move the Medicaid system to managed care providers, Iowa Gov. Terry Branstad and Lt. Gov. Kim Reynolds announced Tuesday.

The implementation of the plan will begin April 1, 2016, the Centers for Medicare and Medicaid Services (CMS) told the administration Tuesday. CMS first delayed the original implementation date of Jan. 1 because the process was moving too fast.

The plan would allow several private health care providers to manage the system that provides health care to the financially less fortunate.

“Now we can work together toward successfully bringing the benefits to all our Medicaid patients,” Branstad said. “We’re pleased that CMS has approved Iowa’s plan to provide a better system for Medicaid patients on April 1. Iowa is ready for a new system that provides access through more doctors and will create a more sustainable Medicaid program for taxpayers.”

Iowa Democrats have all voiced concerns that the change would result in lost doctors and worse care for Iowans who use the program.

Sen. Herman Quirmbach and Reps. Lisa Heddens and Beth Wessel-Kroeschell, all Democrats from Ames, have voiced concern on the transition as well, which the Branstad administration says will actually result in better care from private providers and save the state money.

“Now, more than ever, we must all work together for robust oversight,” said state Sen. Liz Mathis, D-Robins, chairwoman of the Senate Human Resources Committee. “The Senate is working on tough, bipartisan oversight and accountability protections. Iowans will do a better job than out-of-state corporations when it comes to overseeing the health care safety net we all depend on.”

“We’re glad to see that CMS saw past the partisan politics and put patients and providers first,” Reynolds said. “We know that this modernized Medicaid system is the right way to provide a better health system focused on outcomes for Medicaid patients.”

In his Condition of the State address in January, Branstad also outlined his plan, saying if Iowa continued with the current program, the amount of spending on Medicaid would grow unsustainable based on Iowa’s revenue.

“It is clear that CMS was able to see through the politics of this transition, and recognized that Iowa’s program is ready to move forward with providing the health care and services that Iowans expect,” said House Speaker Linda Upmeyer, R-Clear Lake.

With the announcement, Iowa is set to join 39 other states and the District of Columbia, which all have a managed care system.