Iowa To Reconsider Cutting 4,000 ‘Medically Needy’ Beneficiaries from Medicaid

The Iowa Department of Human Services' Council on Human Services, a policy-making board, has agreed to "reconsider" cutting from Medicaid 4,000 "medically needy" residents whose "limited resources keep them just above the eligibility line for medical services," the Des Moines Register reports. Faced with eliminating $18.6 million in Medicaid spending to comply with 4.3% in cuts ordered by the state, the council last week had agreed to drop all 4,000 medically needy beneficiaries from Medicaid. However, Lt. Gov. Sally Pedersen (D) has convinced the council to meet next week to discuss the issue further, the Register reports. State Department of Human Services Director Jessie Rasmussen said that eliminating the 4,000 beneficiaries could save the state between $8 million and $10 million. If the council ultimately decides not to cut medically needy beneficiaries, members suggested that cuts could be made to "a range" of Medicaid services or to care providers' reimbursement rates (Santiago, Des Moines Register, 12/13).