Attempt to delay Medicaid management rules fails

DES MOINES — The state will proceed with planning for private management of Iowa's $5 billion Medicaid program after a legislative rule-making panel on Friday declined to slow the process.

Democratic state legislators were unsuccessful in their attempt Friday to delay implementation of new rules and regulations for private Medicaid management, which is scheduled to start March 1, pending federal approval.

'I have no reason to believe we should move forward with rules on a plan that is yet to be approved,' said Sen. Pam Jochum, D-Dubuque, who made the motion to delay implementation.

The motion was defeated on a party-line vote with Democrats supporting and Republicans opposing.

'Delaying rules will just add more confusion and convolution to an already huge task and undertaking for (the state Department of Human Services),' said Rep. Dawn Pettengill, R-Mount Auburn.

Republican Gov. Terry Branstad announced in January 2015 that the state would shift management of its Medicaid program to private health care companies. The stated goals are to create more efficiency, thus saving state taxpayer money, and to produce better care outcomes.

Opponents of the plan have suggested that private health care companies may reduce services in order to save money and that implementation of the plan has moved too rapidly, causing confusion among both Medicaid recipients and health care providers.

Because Medicaid is funded jointly by the federal and state governments, the federal government must approve Iowa's private management plan. Already, the feds delayed implementation from Jan. 1 to March 1, saying the state was not adequately prepared.

Statehouse Democrats said this week they will introduce legislation that would halt implementation of the private Medicaid management program. Republicans said they are unlikely to support a bill that faces an almost-certain veto from the governor.