The Iowa Department of Human Services has agreed to pay an additional $386 million to two insurance companies that will provide Medicaid services for the 2020 fiscal year.
The 8.6% increase will include $115 million in additional state funding, with the federal government paying for the remaining portion.
Governor Kim Reynolds says the state is still saving money despite the increase in dollars:
OC………the future. :22
Reynolds says the increase is part of the negotiated settlement:
OC………….base this off of. ;20
DHS says the rates include changes made by the Iowa Legislature, which account for about 2 percent of the increase.
OC………the M-C-O’s :14
The $5 billion Medicaid program serves about 600,000 poor and disabled people.