Iowa's shift to privately managed Medicaid will save the state 80% less money this year than originally predicted, according to a new state estimate.
At home games, fans sitting in Kinnick Stadium in Iowa City send a wave of support to patients sitting across the way at the new University of Iowa Stead Family Children's Hospital, and now they have t-shirts to match.
The CMS has approved Iowa's plan to cut Medicaid spending by nearly $37 million annually and slow enrollment. The move puts Iowa hospitals' financial stability at risk, according to the state's hospital association.
Frustrated by the Trump administration's slow response, Iowa's Republican leaders have withdrawn their ambitious proposal to establish an alternative individual health insurance system to replace the Affordable Care Act's exchange marketplace.
By eliminating cost-sharing reductions, Iowa's Medicaid waiver proposal would expose lower-income consumers to much higher deductible costs, potentially reducing enrollment and access to care.
It's widely expected that if HHS gives Iowa and Oklahoma the green light on their ambitious redesigns for Medicaid and the Affordable Care Act's insurance exchanges, other states soon would follow with similar proposals.
Iowa's plan to cut nearly $37 million annually in Medicaid spending and slow down enrollment puts the financial stability of the state's hospitals at risk, according to the state's hospital association.
Iowa Medicaid beneficiaries with serious disabilities allege the state's contracted managed-care organizations have cut their monthly cost allowances for home- and community-based care, even though there has been no change in their care needs.
Medica said on Wednesday that it may pull from Iowa's individual insurance marketplace, potentially leaving no alternative insurance option for most residents next year.
Challenges in Illinois are a cautionary tale for the rest of the country and highlight how important it is for Medicaid managed-care plans to work effectively with providers.
The exit of two insurers from Iowa's individual market heightens pressure on the Trump administration to decide whether it will support the Affordable Care Act-regulated markets or watch them explode.
Iowa's controversial move to privatize its Medicaid program has cost participating insurers an estimated $450 million in losses.