Bill would make privatized Iowa Medicaid permanent

News

March 10th, 2026 by Ric Hanson

(Radio Iowa) – A half dozen parents of children with disabilities are urging lawmakers to reject a plan that would prevent future governors from abandoning the system that has private insurance companies managing the state’s Medicaid program. Democrat Rob Sand, who’s running for governor, says the private companies have illegally denied care to thousands of Iowans and as governor he’d take steps to reverse privatization.

Kay Marcell of Urbandale says she and her husband have successfully appealed denials of Medicaid services for her 47-year-old son, Joel, who has developmental disabilities and chronic health issues. “I’m 73 years old and I am still providing regular care for my son and I wonder what will happen to him in the system when I am no longer able to support him as I do now,” Marcell said. “Do not lock this state into a system that frankly in my opinion and from my experience has been pretty much a disaster from the beginning and that disaster is getting worse.”

Stacy Ring of Council Blufs says her 20-year-old son does not speak and depends on Medicaid for a variety of services. “We need an exit strategy for what is rapidly becoming a failed experiment,”Ring said. “My son’s life and the lives of thousands of other constituents are in your hands.”

Governor Branstad issued an executive order in 2016 that set up private management of Iowa’s Medicaid program. The senate has voted to make that action state law and a House committee is reviewing the proposal, which would take effect January 1st — a couple of weeks before the next governor is sworn into office.