Iowa's Medicaid privatization draws scrutiny

[Omaha Steve]

http://www.omaha.com/news/iowa/iowa-s-medicaid-privatization-draws-scrutiny/article_17b06956-e6a1-11e4-bd1d-9b422ad72ad0.html

POSTED: SUNDAY, APRIL 19, 2015 9:33 AM

DES MOINES (AP) — Gov. Terry Branstad's plan to privatize the state's Medicaid program is moving forward, though critics are raising questions about how the shift will impact patients.

Earlier this year, the state began an effort to shift Medicaid administration to two or more managed care organizations, to which Iowa will pay a fixed amount per enrollee to provide health coverage. State officials predict cost savings and say patients will still have access to quality health care. But Democratic Senate President Pam Jochum, of Dubuque, said this week that she is not convinced.

"I am not confident it is going to work well," said Jochum, whose adult daughter has severe intellectual disabilities and receives Medicaid. She added: "I think the goal from the governor is that we need to privatize everything...Our goal is to make sure people are being served."

Amy Lorentzen McCoy, spokeswoman for the Department of Human Services, said the new system would save the state money by avoiding duplication of services and by offering better preventative care. The state estimates savings of about $50 million in the first six months of managed care, starting Jan. 1. McCoy said patients will still receive the care they need.

FULL story at link.