Plans proceeding for Iowa’s Jan. 1 Medicaid privatization

DES MOINES - Iowa's human services agency chief said Monday the state remains on track to implement plans to convert its $5 billion Medicaid system to a managed care network effective Jan. 1.

'We have every reason to believe that is attainable,” Charles Palmer, director of the state Department of Human Services, told Gov. Terry Branstad during a fiscal 2017 budget presentation. He said privatization of Medicaid services should create a system that is more sustainable, predictable and better serves participants while saving the state an estimated $51 million in the first six months.

'My belief is we will be ready (for the Jan. 1 launch), that we continue to see more providers enrolled every day and that we do have a full Medicaid program available at any area that may not have enough providers,” he told reporters after the budget hearing.

Last week, Branstad administration officials announced that more than 12,000 contracts out of about 17,000 major service providers had been signed with the four managed care organizations that will run Iowa's Medicaid modernization plan. It's a system that Branstad's administration says is designed to improve quality, access and outcomes.

Palmer acknowledged the transition is challenging, but he noted his agency has a track record of overseeing major changes. Among them has been the closing of three state institutions - the Iowa Juvenile Home in Toledo and mental health institutes in Clarinda and Mount Pleasant - and the start-up of Iowa's health and wellness expansion in the past five years.

'Those are pretty significant accomplishments,” he said.

Branstad said he thinks federal officials considering whether to grant waivers for Iowa's Medicaid modernization plans will take that into account when assessing his administration's credibility.

'I know we're being bombarded with a lot of misinformation and scare tactics,” said Branstad, who indicated he has 'learned to have a very thick skin” in not responding in kind to 'unfair attacks that have been leveled” at his administration.