From Radio Iowa: The Iowa Department of Human Services announced that it will pay the insurance providers for the states Medicaid program for low-income and disabled residents an additional 386 million dollars in state and federal money. Governor Kim Reynolds the state is still saving money despite the increase in dollars.
The state’s portion of the increase is six-point-five percent or 115 million dollars of the overall 386 million dollars. Reynolds says the increase is part of the negotiated settlement.
The system was privatized by then Governor Terry Branstad, who promised it would save millions of dollars. Reynolds was asked about that promise.
Reynolds says she is doing what she promised.
The governor says her administration will continue looking at the information and working to make things better and will expect the others involved to do the same.
Democrat legislators have been critical of the privatizations of the program and the Iowa Democratic party chair issued a statement today that says: “Apparently Governor Reynolds is more concerned about her reputation than she is about the health of our state or responsible taxpayer spending. Instead of putting resources towards fixing the broken system, Reynolds is doubling-down, handing out bigger raises to M-C-Os with no accountability for service. Hundreds of thousands of Iowans rely on Medicaid to go to the doctor or afford prescriptions, and our tax dollars should be spent making sure these services work effectively for the people who need them most, not insurance executives.”