Mount Pleasant Chamber calls for ‘repeal’ of Medicaid managed care system

Jan. 05--MOUNT PLEASANT -- The Mount Pleasant Chamber Government Affairs Committee called Thursday for a repeal of Iowa's privatized Medicaid system during a conversation with local lawmakers ahead of of the 2018 legislative session.

Kristi Ray, executive vice president of the Mount Pleasant Area Chamber Alliance, presented the organization's legislative agenda to state Rep. Dave Heaton, R-Mount Pleasant, and Sen. Rich Taylor, D-Mount Pleasant, at Iowa Wesleyan University with members of the government affairs committee and community members present.

"We urge our state Legislature to immediately repeal the privatization of Iowa's Medicaid system," Ray said. "The goals established when the system was privatized have not been advanced."

Ray pointed to Henry County Health Center, which lost $992,280 in fiscal year 2017 due to a lack of reimbursements from the Managed Care Organizations, as an example of how the for-profit insurance companies have put health care providers at risk.

"We fear the financial sustainability of rural health care, and especially right here in Henry County, is being threatened," Ray said. "And we ask for your support in doing something to help us secure that rural health care we all rely on."

As chairman of the House Health and Human Services Appropriations Committee, Medicaid funding falls underneath Heaton's budget. He was chairman of the committee when then-Gov. Terry Branstad, also a Republican, "surprised" legislators with his decision to terminate Iowa Medicaid and transform the system into one run by for-profit insurance companies.

"I'm not necessarily supportive of repealing totally the managed care approach," said Heaton, who has served 24 years in the state Legislature, "because I look at other states and they're doing a good job."

However, he said, part of the key to other states' success has been that they did not set up the system as a cost-saving measure, but rather as a way to slow the growing price of state-managed Medicaid.

When Branstad implemented the managed care system, Heaton said the cost to support Medicaid payments in Iowa was growing 10 percent annually.

"What I'm asking the governor (Kim Reynolds) to do is try to improve the system we have," he said. "I want her to go to other states where it's working and find out why Iowa is an anomaly in this process."

Taylor, beginning his third Senate term with the start of session Monday, said he has been "fighting against the privatization of Medicaid since this started."

"It was a big mistake," he said.

Also Thursday, Ray outlined the Chamber's other top legislative priorities: economic development, workforce training and investments in education.

She stressed the importance of tax credits, particularly the Workforce Housing Tax Credits and Historic Preservation Credits, that have benefited Henry County and other communities across the state.

"All we ask is that the Legislature protect those tax credits that show a direct and documented return on investment," Ray said. "If it's working for us and it's growing our economy, we hope that you will protect those tax credits."

Ray said the High-Quality Jobs Program also has benefited the area, resulting in local investments from Hearth & Home Technologies, ContiTech, Lomont Molding and Beck's Superior Hybrids. In total, $32 million was generated for the economy and 65 new jobs were created by taking advantage of the jobs program, she said.

At 8:30 a.m. Jan. 27, the Chamber will begin its series of legislative forums with Heaton and Taylor at Iowa Wesleyan University's Chadwick Library. The first forum will focus on economic development.

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