Iowa Senate votes to end Medicaid privatization

Alex Hanson

The Iowa Senate approved legislation Monday that would terminate Gov. Terry Branstad’s plan to privatize Medicaid in the state.

With the rising cost of the state program, Branstad has said it is necessarily to modernize the system, which would put several private healthcare companies in charge of managing the care.

The Senate bill, titled the “Healthcare Protection Act,” passed the upper-chamber on a 29-19 vote. Every Democrat voted for the bill, and three Republicans  — Sens. Jake Chapman, R-Adel, Tom Shipley, R-Nodaway and David Johnson, R-Ocheyedan — voted in favor the bill. 

Along with instructing the managed care companies set to take over the process, it would direct the Iowa Department of Human Services to improve care in the state.

Democrats have argued the process is going too fast and will lead to a loss in coverage for some of the 560,000 Iowan’s who rely on the healthcare program for the poor.

Former Iowa Gov. Chet Culver, who has remained largely out of the political scene since he left office in 2012, has decided to get involved in the issue, including holding two town hall meetings this week.

“Today, the Iowa Senate confirmed what hundreds of thousands of Iowans already know — that the rush to privatize Medicaid leaves too many unanswered questions, and puts Iowans at risk of losing the health care they deserve,” he said in a statement.

Culver has also scheduled two more town halls for next week in Sioux City and Davenport.

“This is not a partisan issue — it’s an issue of basic fairness for people who rely on Medicaid. I am grateful for the Republicans and Democrats in the Iowa Senate for working in a bipartisan way to pass this bill, and I look forward to continuing the conversation with Iowans in the future,” Culver said.

Republicans continue to argue that Medicaid takes up too much of the state budget and the program is unsustainable at its current rate.

“We are on an unsustainable path,” Schultz told The Des Moines Register.