A spirited discussion of privatizing the supervision of Medicaid in Iowa

A crowd of around 30 people engaged in a sometimes spirited discussion Saturday of the State of Iowa's move to privatize the supervision of the state's Medicaid program.

The group was at Decorah City Hall to listen to State Assemblyman Darrel Branhagen and State Senator Mike Breitbach.  The topic switched to changes in Iowa's Medicaid program after Decorah resident Joann Hagen told the two state legislators she worries the new system will lead to poorer care for about 560,000 poor and disabled Iowans.

The two lawmakers defended the privatization plan.  Branhagen said other states that have switch to having private companies supervise Medicaid patients have been happy with the results.  Breitbach (who voted against the measure) said he hopes the switch will lead to better outcomes for Medicaid patients and that the present system is not doing that.  "As Medicaid costs go up, it's taking away revenue from other parts of the (state) government," he said, noting that Medicaid now accounts for almost one-quarter of the state's spending.

But several people at the forum disagreed with Branhagen and Breitbach, saying the new system would invite abuses in Iowa--as it has in other states, where the same private managed care organizations have gotten large fines for their actions.