Clip files / Local news from the states
This column features selected short items about state health care policy.
State expands Medicaid program
DES MOINES, IA—Gov. Tom Vilsack heralded an expansion of the state’s Medicaid program, an initiative that prevents the state from losing $180 million in federal money, while increasing the number of patients eligible for reduced-cost medical care. Iowa is expanding Medicaid at a time when most states are making cuts because of the rapid rise of medical costs. The Medicaid funding crunch is exacerbated by a recent federal crackdown on accounting methods that allowed states to use federal money as matching funds for obtaining other federal money. That would have cost Iowa about $180 million per year, or 9% of the overall Medicaid budget. Iowa averted the loss by getting a waiver from the U.S. Department of Health of Human Services. In exchange, Iowa is expanding its services and testing whether an emphasis on preventive care can lead to greater cost savings down the road. The Iowa Department of Human Services estimates that a minimum of 14,000 people will participate in the new initiative, called Iowa Care.
—Quad-City Times, July 18
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