Press Release

Loebsack Calls on CMS to Rescind Iowa’s Medicaid Waiver

Two new reports show privatized program isn’t working

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Washington, December 21, 2016 | Joe Hand (202-225-6576) | comments
Congressman Dave Loebsack today called on the Centers for Medicare and Medicaid Services (CMS), the federal agency responsible for granting the State of Iowa the waiver to privatize its Medicaid program, to rescind the waiver. A report published today by the Des Moines Register shows that payment shortages have created a 'catastrophic experience' for the program’s private managers. This new report comes on top of continued complaints from patients about access to services and providers about delayed reimbursements.  

A separate report issued today by the nonpartisan Iowa Legislative Services Agency, shows that the state’s Medicaid program faces a $14.5 million shortfall for FY2017 and a $109 million shortfall in FY2018.

“Since the plan to privatize Medicaid in Iowa was announced, I have been wary of this proposal. Nearly 600,000 of our state’s most vulnerable populations, including low-income families, children, seniors and individuals with disabilities rely on Medicaid. Throughout this transition to a privatized system, my number one concern has been about their ability to receive quality health care,” said Loebsack. “As the program has progressed, it’s become more and more clear that the privatized Medicaid program is not working. Thus, CMS needs to rescind the waiver it granted the state of Iowa. This plan was implemented too quickly and is grossly underfunded.”

Loebsack has met with families who have been personally affected by this transition and has received feedback from providers who are having issues with being reimbursed in a timely manner. Since last year, Loebsack has been leading the fight with leaders from the Iowa Senate to ensure all 600,000 Iowans who rely on Medicaid are not negatively affected by the transition.
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