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Wednesday, Nov 18 2015

Full Issue

Iowa Lawmakers To Urge Feds To Halt Medicaid Privatization

Three Democratic state senators are travelling to Washington, D.C., to meet with federal officials in an effort to stop Iowa Gov. Terry Branstad's privatization plan. In other state Medicaid news, adult care facilities in Kansas are wary of KanCare reimbursement changes; a Michigan regulatory board denies contract appeals by five Medicaid HMOs; and Virginia's Medicaid costs are forecast to rise.

Three Democratic senators will ask federal officials Wednesday to reject or delay Gov. Terry Branstad鈥檚 controversial effort to privatize management of Iowa鈥檚 $4.2 billion annual Medicaid program. 鈥淕overnor Branstad鈥檚 almost complete lack of transparency has left major questions from both providers and members unanswered,鈥 said Sen. Liz Mathis of Robins. 鈥淭he missed deadlines, the disorganization, the financial threats against providers have created fear, uncertainty and turmoil.鈥 (Clayworth, 11/17)

Three Iowa Senate Democrats plan to meet with federal officials in Washington on Wednesday in hopes of stopping implementation of Gov. Terry Branstad's proposed privatization of the state's Medicaid program. Senate President Pam Jochum of Dubuque and Sens. Amanda Ragan of Mason City and Liz Mathis of Robins say the privatization plan is disorganized and leaves too many major questions unanswered to be implemented on Jan. 1. (11/17)

Groups that represent Kansas adult care facilities say a change to their Medicaid reimbursement calculations is not ideal, but they鈥檒l accept it if it resolves payment issues caused by the state鈥檚 switch to privatized managed care. Rhonda Boose, an official with the Kansas Department for Aging and Disability Services, brought the changes to a legislative committee on rules and regulations for review this week. The changes modify how adult care facilities are reimbursed for care for Medicaid-eligible residents. The facilities receive different rates depending on the medical needs of the residents with Medicaid, which in Kansas is called KanCare. (Marso, 11/17)

Despite last-minute pleas this morning by a handful of Medicaid HMOs, the Michigan State Administrative Board held firm and upheld state joint evaluation committee recommendations that denied the appeals of five of six health plans, state officials told Crain's. Losing appeals of a six-year, $42 billion state contract to serve 1.7 Medicaid beneficiaries were HAP Midwest Health Plan, Sparrow PHP, Meridian Health Plan of Michigan, Fidelis SecureCare of Michigan and Total Health Care. Molina Healthcare of Michigan was the only HMO that won its appeal. The decisions mean Sparrow PHP will be out of the Medicaid business by Jan. 1. HAP Midwest will have to retool its strategic plan and focus on serving several counties outside Southeast Michigan. (Greene, 11/17)

A new state forecast expects Virginia鈥檚 Medicaid costs to increase by nearly $1 billion through the next two-year budget. The $956 million increase is due primarily to a surge in enrollment by people who were eligible for program benefits but either did not know it or did not act on it until this year. (11/17)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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