Letter to the Editor: Healthcare providers suffer under privatized Medicaid

To the Editor:

Governor Branstad turned over $5 billion to private for-profit insurance companies in 2016 to manage the Medicaid program. Since AmeriHealth and United Healthcare took over, healthcare providers have been underpaid or not paid at all for the services they provide to Medicaid recipients. These complaints continue today.

Rural hospitals are paying the high price for the privatization of Medicaid. Adding to the reimbursement problems is that Governor Branstad and his party who controls the state house and state senate sought exemptions from the Affordable Care Act. This resulted in the removal of the requirement that Medicaid retroactively pay for care from the time of application.  Consequently, rural hospitals have had to absorb the cost of care provided prior to approval. One rural hospital in northeast Iowa reported that the managed care company refused to pay claims using the excuse that  this hospital was not credentialed.

Since privatized Medicaid, some clinics have had to take out loans to cover payroll as they await payment for services. Guthrie Center provides care to people with severe disabilities and yet it is owed $300,000 by United Healthcare. The University of Iowa is owed $1 million. Companies that provide wheelchairs to Medicaid recipients have not been paid or only paid cents on the dollar. One managed care company will stop covering services at Mercy Health Network, which has more than 200 hospitals and clinics across the state.

When our healthcare providers are weakened by non-payment for their services, it threatens all of us who rely on our providers to be there when we need them.  If they can’t get paid for their services, how can they stay open? Unfortunately, although the privatization of Medicaid has proven to be a disaster, the governor and the governor’s party which controls the state legislature supports Medicaid privatization. If you care about a strong health care system and access to healthcare providers in rural counties, support the party which wants to fix this disastrous privatization of Medicaid.

Ann Hart
Waukon