DHS waives sanctions at start of Iowa's new Medicaid system - KWWL - Eastern Iowa Breaking News, Weather, Closings

DHS waives sanctions at start of Iowa's new Medicaid system

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DES MOINES, Iowa (AP) -- The state agency overseeing Iowa's transition to a privatized Medicaid program waived any possible sanctions against three insurance companies during the first two months of the new system and it didn't inform health advocates or lawmakers of its plans.

Information obtained through a public records request show the Iowa Department of Human Services issued no written warnings or corrective action plans in April and May to the insurance companies that now run the state's Medicaid program. Fees for any purported violations were also waived.

A DHS spokeswoman says the agency had discretion on when to sanction the companies and wanted to take a "collaborative approach." The spokeswoman says no data is available yet on any possible problems recorded during that period.

Some Medicaid patients and health care providers have reported delays in payments and care. DHS says the issues are not systemic.

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