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Gov. Branstad extends Medicaid provider Safe Harbor time period to April 1

Iowa Governor Terry Branstad
Iowa Governor Terry Branstad

DES MOINES – Today, Gov. Terry E. Branstad announced an extension of the time period in which Medicaid providers are able to receive full reimbursement. This measure allows all Medicaid providers, whether in-network or out-of-network for the partner insurance plans, to receive 100 percent reimbursement for services provided until April 1, 2016.

The Iowa Medicaid Modernization plan, the governor claims, always included a safe harbor reimbursement floor of 100 percent current Medicaid rates for any provider who contracts with a partner insurance plan. The extension announced today is intended to give patients peace of mind that they can continue seeing their providers. The measure also gives providers additional time within the safe harbor to contract with a partner plan.

This announcement comes on the heels of news that three major hospital systems have signed up with a managed care organization last week. Governor Branstad says that extending the safe harbor for provider reimbursement coupled with the hospital systems signing demonstrates Iowa will have a robust provider network for Medicaid patients on Jan. 1, 2016.

This safe harbor extension builds upon an “already thoughtful transition” to deliver “improved health outcomes” for Iowans on Medicaid. Phased-in details were announced back in November and can be found here.

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