CMS approved Iowa's section 1115 Medicaid demonstration Oct. 26, which waives the program's three month retroactive eligibility period.
The three month retroactive eligibility period allows Medicaid beneficiaries to receive benefits for services provided three months ahead of a member's application. Under the Iowa Health and Wellness Plan, all Iowa Medicaid beneficiaries, save for pregnant women and children under age 1, will gain coverage effective upon application.
CMS said the waiver will "increase continuity of care by reducing gaps in coverage when beneficiaries churn on and off Medicaid or sign up for Medicaid only when sick." CMS added the waiver will encourage "beneficiaries to obtain and maintain health coverage, even when healthy."
Iowa argues the waiver will save Medicaid $36.7 million, Des Moines Register previously reported. The Iowa Hospital Association opposed the waiver, countering the move will lead to higher uncompensated care costs.
The waiver is effective Nov. 1, 2017, through Dec. 31, 2019.
More articles on healthcare finance:
Ontario Systems honors ARM, RCM leaders: 4 things to know
QueueLogix's new app aims to make billing faster, better
Stryker business launches service aimed at physician practice revenue cycle, quality improvement