Ragan Report

Providers say private Medicaid hurts care
    Iowa Medicaid providers are struggling under the Branstad-Reynolds privatization plan, according to a new survey.
    More than 400 doctors, hospitals, local clinics and non-profit health care providers completed the survey. They have faced hurdles and headaches in providing high-quality care since Iowa's $5 billion Medicaid program was privatized on April 1.
    According the survey, Medicaid providers are seeing higher costs in running their businesses. For example:
·         90 percent say privatization has increased their administrative expenses
·         79 percent are not getting paid on time by the for-profit corporations now running Iowa Medicaid
·         66 percent say when they do get reimbursed, it’s at lower rates than agreed upon
·         28 percent have had to borrow money to pay their bills while waiting to be reimbursed by out-of- state Managed Care Organizations
    The switch to private Medicaid has caused a significant hardship, according to one mental health center. “Our agency has had to take out loans. Some of the staff have volunteered to go without pay for a couple of pay periods. This is all because the MCOs owe approximately $200,000 to us at this time…The MCOs were not at all prepared for what they took on in such a short time. We need help.”
    Those who completed the survey say services for Iowans on Medicaid will suffer because of privatization:
·         61 percent say privatization has reduced the quality of services they can provide
·         46 percent of providers are planning to reduce services
·         38 percent say Medicaid patients can no longer see their out-of-network specialty providers
    One survey respondent said, “It has harmed our most vulnerable locally, as they now have little to no options for some services…and sometimes no local options at all.”
    Iowa Medicaid is in a state of emergency. Iowa physicians may be forced to stop taking Medicaid patients or close their doors all together. That would be bad for the 560,000 elderly, disabled and low-income Iowans who rely on Medicaid.
    For full survey results and to read the experiences of Iowa Medicaid providers in their own words, go to www.iowahouse.org/medicaidprovider.pdf.
     Sen. Amanda Ragan (D-Mason City) serves Franklin, Butler and Cerro Gordo counties in Senate District 27. She can be reached at (515) 281-3371 or (641) 424-0874. Email her at amanda.ragan@legis.iowa.gov.