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Branstad announces federal approval of Medicaid privatization

Iowa Governor Terry Branstad
Iowa Governor Terry Branstad
DES MOINES – Gov. Terry Branstad announced Tuesday that the Centers for Medicare and Medicaid Services (CMS) has approved Iowa’s plan to privatize Medicaid.

Iowa and CMS have agreed to an April 1, 2016 implementation date. The Administration’s letter to CMS can be found here. In a letter back to the Administration, CMS noted they had seen “significant improvement” and “significantly enhanced” provider networks. Iowa is moving to a managed care system, as 39 other states and the District of Columbia have done within their Medicaid programs.

“Our agreement with CMS gives certainty for our patients and our providers. It is time to move forward with a modern and managed Medicaid system. Nationwide, over 40 million Medicaid patients have managed care. Here in Iowa, for more than 20 years, portions of our Medicaid population have received managed care. Now we can work together towards successfully bringing the benefits to all our Medicaid patients. We’re pleased that CMS has approved Iowa’s plan to provide a better system for Medicaid patients on April 1,” said Branstad. “Iowa is ready for a new system that provides access through more doctors and will create a more sustainable Medicaid program for taxpayers.”

Lt. Gov. Reynolds concurred saying, “We’re glad to see that CMS saw past the partisan politics and put patients and providers first. The agreement with CMS gives Iowa full federal approval to move forward. We have already begun working on implementing modern managed care for Iowa Medicaid patients beginning April 1. We know that this modernized Medicaid system is the right way to provide a better health system focused on outcomes for Medicaid patients.”

Managed care means better access for patients to doctors. Iowa’s Medicaid patients and providers will have greater access to a robust provider network. Through managed care, Iowans’ health care delivery will improve by offering preventive services above and beyond what currently is available, through reducing emergency room visits, hospitalizations and surgeries, and eliminating unnecessary or duplicative services.

Meanwhile, Democrats responded with a statement from party chairman Dr. Andy McGuire:

“I would like to commend Democrats in both the House and Senate who listened to Iowans’ thoughts and concerns for many months now on Medicaid privatization, and stood firmly opposed to this rushed and reckless plan. Democrats fought tirelessly to ensure every Iowan has access to quality health care, and that is a fight we will continue every day moving forward. “I also thank all the patients, advocates and caregivers who voiced their serious objections and concerns with Medicaid privatization.

Democrats will continue to ensure your voices are heard and that proper oversight is put in place. “It is telling that this plan has now been delayed for the second time, despite many assurances from the Branstad-Reynolds administration that the transition was ready to go. It is now incumbent on the Branstad-Reynolds administration and Republican lawmakers to actually listen to the people of Iowa and make certain that this transition takes place as smoothly as possible and does not interrupt care or services.”

A liberal political group, Progress Iowa, also lashed out at the announcement.

Matt Sinovic of Progress Iowa, with Amanda Ragan and Sharon Steckman
Matt Sinovic of Progress Iowa, with Amanda Ragan and Sharon Steckman
Executive Director Matt Sinovic issued the following statement today in response to the decision made by the Centers for Medicare and Medicaid Services (CMS) to approve the Branstad/Reynolds administration’s dangerous plan to privatize the health care of 560,000 Iowans, with a start date of April 1, 2016:

“The 560,000 Iowans who rely on Medicaid are in for the worst April Fool’s Day ever as they will wake up with outsourced health care,” said Matt Sinovic, executive director of Progress Iowa. “Unfortunately, Medicaid privatization isn’t a joke or a prank. It’s a dangerous scheme that jeopardizes the health care of thousands. The Branstad/Reynolds administration ignored public input during this process at every turn. They continue to show complete disregard for the well-being of everyday Iowans, instead catering to companies looking to profit off of Iowa’s most vulnerable citizens.”

Comments by Senator Liz Mathis of Robins, chair of the Senate Human Resources Committee, and Senator Amanda Ragan of Mason City, co-chair of the Health and Human Services Budget Subcommittee, on the decision by federal Centers for Medicaid Services to allow the Branstad Administration’s plan to privatize Iowa Medicaid to go forward on April 1:

“We are thankful another month of delay. Families living with severe medical challenges, the people affected most directly by Iowa Medicaid privatization, know it is far from ready,” said Senator Amanda Ragan of Mason City, co-chair of the Health and Human Services Budget Subcommittee. “Iowans still can’t get answers to basic questions. Iowans are being told trusted local doctors and service providers won’t be available. Iowans are losing independent case managers paid to put patients first.”

“Now, more than ever, we must all work together for robust oversight,” said Senator Liz Mathis of Robins, chair 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.”

Also, former Iowa Governor Chet Culver and a “diverse group of health care providers, medical professionals, disability advocates, Medicaid beneficiaries and their families” will be staging a rally at the Iowa State Capitol on Wednesday, February 24th, to raise awareness of peoples’ concerns regarding the privatization of Medicaid in Iowa.

“Over the last few weeks, hundreds of Iowans have attended town meetings, contacted public officials, and have told their stories in every part of the state,” said Governor Culver. “While we do not know what the federal government will decide, we do know that they are listening to Iowans – which is why it is so important for people affected by this proposal to make their voices heard.”

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