Updates as session nears end

HF 2442
HF 2442 eliminates the requirement that taxpayers indicate whether they have health insurance for their children on their tax returns. The bill has a retroactive applicability provision that makes it apply on and after Jan. 1, 2016. I was glad to support this bill because I believe it helps protect the privacy of individual citizens and keeps them from having to disclose unnecessary information to the federal government.
Medicaid Modernization
On April 1, Managed Care Orginzations (MCOs) began providing care for Iowa’s 560,000 Medicaid recipients as a part of the state’s new Medicaid Modernization plan. More than 90 percent of Iowans who are elligable for Medicaid services will receive services through the MCOs under the new system. They include those in the Iowa Health and Wellness Plan (Iowa’s version of Medicaid expansion under the Affordable Care Act), low income families and children, people receiving long-term care, and those who receive waivers for home and community-based services.
This is a big change in Iowa’s health care delivery system. Currently our Medicaid system simply works to treat diseases and illnesses as they occur. To gain control of our ever-increasing costs, we must approach health care in a different way. Our new system, Medicaid Modernization, will focus on preventative care to help patients lead healthier lives. Promoting healthy lifestyles and tackling chronic disease will result in overall lower health care costs. In 1999, the state-funded portion of Medicaid was $445 million and accounted for 9.28 percent of the $4.8 billion General Fund Budget. The program covered just under 200,000 Iowans. In 2016, Medicaid cost the state a total of $1.3 billion. If we don’t get the growth of Medicaid under control, we will reach a day when the Legislature has to choose—more money for Medicaid or more money for schools.
I am optimistic that Managed Care is the right approach to make Iowans healthier and provide predictability to the Medicaid budget. Although it is a big change to move from a fee-for-service model to a coordinated one, I am confident that this change will be a benefit to the patients that rely on high quality health care from Medicaid.
Services will not change or be cut. MCOs are required to cover all services currently covered by Medicaid. Covered services include, but are not limited to; inpatient and outpatient services; behavioral care; home and community-based services; facility based care and transportation.
As Medicaid Modernization rolls out over the next few weeks, please let me know if you run into any problems. This is a large undertaking and I am more than willing to do what I can to assist my constituents with a smooth transition to managed care.
Tax Increment Financing (TIF)
HF 2435 is a bill that relates to the use of future tax dollars to help improve infrastructure such as roads, bridges, buildings, sewer and water in a given district. Current TIF laws have been a good tool for economic development in the 7th district including the Golden Oval egg producers in Winnebago County which I have personally been involved with. HF 2435 seeks to improve TIF laws by eliminating a loophole which allows a district to use TIF indefinately. The bill changes all TIF districts to a 20-year time period to ensure a lack of abuse. Another issue HF 2435 seeks to address is the use of TIF by public entities. The bill states that public entities which are unable to pay for the bonds that were purchased to fund the project are ineligible to use tax increment financing. I understand the reasoning behind these changes because TIF was never intended to be used on a permenant basis and it was intended that the increase in taxes caused by the improvements would pay off the bonds purchased at the beginning of the project. I am in favor of most of the changes proposed by HF 2435, including the time change. However, I am uncertain of the change regarding the public entities portion. I have talked to House leadership about allowing public entities that provide public safety to use tax increment financing when applicable, and that change is under consideration. HF 2435 is eligible to come up for debate in the House in the next few weeks.
 

Lake Mills Graphic

204 N. Mill Street
Lake Mills, IA 50450

Office Number: (641) 592-4222
Fax Number: (641) 592-6397

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