How Iowa’s candidates for governor see the future of Medicaid
More than 700,000 Iowans rely in some form on Medicaid, the government health program for individuals who have a disability or low income. The program is jointly funded by the state and federal governments, and is operated by the state under federal regulations.
In 2015, then-Gov.
Currently, three MCOs operate
Proponents of managed care say the private companies are better equipped to manage the state's Medicaid program, which they say creates efficiencies, leading to lower overall costs without sacrificing services.
Critics of managed care say it creates a system by which private companies make decisions based on what is most cost-effective rather than what is best for the patients.
Medicaid managed care has become the dominant approach across
Reynolds, who has held the office since 2017, is not seeking re-election to another four-year term. Sand, the state auditor who lives in
Three prominent national elections forecasters —
Sand says if elected governor he would start undoing private Medicaid management on Day 1.
Sand says he would reverse private Medicaid management the same way it was started: by a governor's executive order.
In the policy section of Sand's campaign website, he calls private Medicaid management "one of the most disastrous decisions in
As state auditor, Sand in 2021 issued a report that purported to show a spike in illegal denials of care requests after the state's shift to private Medicaid management.
During campaign events, Sand regularly mentions his proposal to undo private Medicaid management. He addressed the topic again last week when asked by a reporter about his batch of policy proposals designed to lower everyday costs for Iowans.
"Healthcare is a big piece of this. Iowans have seen their costs go up, and their taxes go up, and the access to care go down because of privatization of Medicaid. We should end that. I think it's been a disaster," Sand said. "It's been a disaster because of how it's been done in
Sand continued, saying he envisions a program where nonprofits manage the state's Medicaid program.
"My guess is that the direction to move forward is into nonprofit-based managed care," Sand said. "We certainly want to keep managed care because the state is able to pull in a tremendous amount of federal money a year, over a billion dollars, if you have managed care. So we want to maintain that.
"But I think the main question is making sure that it's being done by people who are mission-focused, and their mission is actually providing healthcare as opposed to making a profit."
Lahn has said he believes that using MCOs "is the right idea," noting 42 U.S. states use MCOs for Medicaid management.
Lahn discussed the topic when asked by a reporter after he participated in an event hosted by the
"I think that on our Medicaid program, I personally believe that using MCOs is the right idea," Lahn said. "I know 42 states use MCOs. I know they operate in different ways, and those are very, very blue states and very, very red states.
"Ultimately, my goal is to make sure that with Medicaid that we're getting good service, prompt payment; we're not using AI in the decision-making of claims at all; and also that we are not having vertical integration to make sure that the price is affordable, and we're not having perverse incentives of an insurance provider also owning a pharmacy or also owning a care provider."
Sand's campaign has criticized Lahn's previous advocacy work in
Lahn addressed that earlier this year while appearing on "
"I was an interim state director (in
"And I will tell you with some of the federal changes, those things have been solved," Lahn continued. "My hope and goal for Medicaid is to make sure we have a good delivery system, good care, prompt payment for providers, and that we can provide Iowans with healthcare that they can count on. But the issues that we were really fighting against there had those loopholes, so to speak. Those worries have largely been addressed."
MCOs almost became law
Some Republican lawmakers earlier this year proposed making it a state law that the state contract with private companies for Medicaid management. Such a law would have taken that decision out of the hands of the next governor by placing private management in state law.
Had the proposal been passed into law, private Medicaid management's future in
Since the provision that would have codified private Medicaid management did not earn sufficient support in the
The general election is
Distributed by Newsbank, inc.


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