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Democratic effort to stall Medicaid privatization fails

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November 3rd, 2015 by Ric Hanson

DES MOINES, Iowa (AP) — A Democratic effort to delay privatization of Medicaid in Iowa has failed in a legislative oversight hearing. Democratic lawmakers on the bipartisan Health Policy Oversight Committee proposed a motion Tuesday asking Gov. Terry Branstad to hold off on implementing the privatization plan by six months. But Republicans opposed it and the proposal did not move forward.

Branstad’s plan to move Medicaid to private management is scheduled to start January 1. It has drawn scrutiny over the projected cost savings, how contracts have been awarded and how the change would impact patients. Officials from the Department of Human Services say they are working to ensure a smooth transition to the new program. But Democratic lawmakers and health care providers questioned the speed of the transition.