Iowa Gov. Terry Branstad and Lieutenant Gov. Kim Reynolds have requested expedited approval from HHS concerning the Iowa Health and Wellness Plan — a new demonstration project that would increase access to care for low-income residents while promoting private market coverage.
State lawmakers approved the legislation establishing the program in May. If it gets federal approval, the state will launch a public healthcare program for those who earn up to 100 percent of the federal poverty level. It will also subsidize private insurance coverage for those earning up to 138 percent of the poverty level. The state is seeking approval to carry out the initial demonstration from 2014 to 2018.
Under the plan, people at or below the poverty level will receive benefits similar to what state employees currently receive. Those above the poverty level will choose private health plans through the new exchanges. State residents at 50 percent of the federal poverty level and above will be asked to contribute a "modest amount" to help cover the cost of their care in place of copays, according to a letter from Gov. Branstad and Lt. Gov. Reynolds to President Obama and HHS Secretary Kathleen Sebelius.
State lawmakers intend the premium contributions to encourage healthy behavior through rewards and improved access to care.
Gov. Branstad and Lt. Gov. Reynolds have asked to meet with President Obama and Secretary Sebelius in late September to discuss the new healthcare program.
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