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Iowa governor, CMS expand Medicaid coverage through waiver agreement

Iowa is moving to managed Medicaid system, through waivers agreed upon by CMS and the state.

Susan Morse, Executive Editor

Republican Iowa Governor Terry Branstad has announced expanded Medicaid coverage for eligible residents in his state through a program he is calling Medicaid modernization.

Iowa is moving to a managed Medicaid system, through waivers agreed upon by the Centers for Medicare and Medicaid Services and the state, Branstad and Lt. Gov. Kim Reynolds announced Feb. 23.

The new system goes into effect April 1.

The program uses contracted arrangements between state Medicaid agencies and managed care organizations that accept a set per member per month capitation payment for services. For 20 years, some Medicaid beneficiaries in Iowa have had access to managed Medicaid through IowaCare.

[Also: Arkansas governor: Feds back plan to preserve Medicaid expansion]

Through the CMS agreement, starting April 1, a greater number of Medicaid patients will have access to a larger number of doctors and provider networks, and Iowa will have a more sustainable Medicaid program for taxpayers, Branstad said. Healthcare delivery will improve by offering preventive services above and beyond what currently is available, he said.

Now we can work together towards successfully bringing the benefits to all our Medicaid patients," Branstad said.

A limited number of states have obtained or are seeking similar approval through waivers to implement Medicaid expansion in ways that extend beyond the flexibility provided by the law.

[Also: Obama budget would lift HHS spending to $1.1 trillion, entice Medicaid expansion]

A few states have sought waivers in part because they could not otherwise secure political support to expand Medicaid coverage under the Affordable Care Act, according to the Kaiser Family Foundation. The alternative models are seen as a politically viable way to extend coverage and capture enhanced federal matching funds for newly eligible adults, according to Kaiser.

CMS has approved waivers to implement Medicaid expansion in seven states: Arkansas, Iowa, Michigan, Pennsylvania, Indiana, New Hampshire and Montana. 

Twitter: @SusanJMorse