This is the direct result of Gov, Branstad unilaterally changing the administration of Medicaid in Iowa from a government run agency with very low overhead (<4%) to a "Managed Care Organization" (MCO). These are essentially arms of private insurance companies.
Iowa contracted with 3. Their overhead is at least 15% and they want more, claiming they are losing money.
That money comes from the Medicaid pot so at least an additional 10% of Iowa's Medicaid is not being used for client health.
The MCOs current practices are to deny payments to providers for services already rendered and approved. They are also cutting back on services for the extremely handicapped.
Hospitals and providers are really caught in the middle because many of these patients need the services, but not Medicaid is not paying due to the MCOs.
Democrats in the Iowa senate tried to block the privatization, but Republicans blocked their block and the system went in without oversight from the legislature. Some perfunctory oversight was added, but is not enforced.
Branstad claims the the system is working beautifully and the state is saving big bucks.
Those are what we call big fucking lies that are easily refutable.
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