Iowa Governor Requests DHS Staff Salary Increases, ‘Status Quo’ on Medicaid Funding

For the first time in at least 15 years, an Iowa governor has not recommended funding changes for Medicaid.

The announcement was made by Legislative Service Agency Analyst Jess Benson as he presented Gov. Kim Reynolds’ fiscal year 2023 Department of Health and Human Services budget recommendations Tuesday.

Benson said the Department of Management and the Department of Human Services is estimating Medicaid will have a surplus of $257 million for fiscal year 2022 and with carry forward, they estimate the fiscal year 2023 could recognize a surplus of $168 million, if the 6.2% Emergency Support Functions rate expires in March.

Benson said he expects the rate will last through at least June.

“If that is extended, these surpluses will likely be increased by $40-plus million or more per each quarter that it’s extended,” he said.

The state has added about 6,000 people per month to Medicaid, and that number continues to grow. Once the public health emergency ends, the Department of Human Services plans to reevaluate individuals’ eligibility for the program, and at that time, individuals who are not eligible for the program will be dropped over a six-month time period, he said. Until then, the state is not disenrolling anyone. Benson said they estimate between 15% and 30% of increased enrollment will drop off after the public health emergency ends, although it’s hard to determine…. (Excerpts from the Virginia Star)