MIDWEST Hospitals balk at Iowa’s proposed $37 million Medicaid cut
Iowa is seeking federal permission to slow the pace of enrollees entering its Medicaid program via a new waiver request. The move is expected to save the state nearly $37 million annually but puts hospitals at financial risk, according to the state’s hospital association.
Specifically, Iowa is seeking to end an Affordable Care Act provision that allows people to obtain Medicaid coverage the day they apply, assuming the applicant qualifies for benefits. Providers can also bill for services provided in the three months before the application, assuming the patient was eligible during that time.
Iowa submitted the request as an amendment to its Medicaid expansion waiver. The CMS will accept comments on the proposal through Sept. 7.
Elimination of retroactive coverage is expected to reduce monthly enrollment by 3,344 enrollees and reduce annual Medicaid spending by $36.8 million, according to a state estimate.