Iowa misses key federal health care deadline

States had until Sept. 30 to choose “essential health benefits”

Mike Wiser
Published: October 28 2012 | 5:00 am - Updated: 1 April 2014 | 2:37 am in
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DES MOINES — Gov. Terry Branstad’s insurance commissioner recently fired off a letter saying Iowa would miss a key deadline that states needed to meet to comply with the new federal health care law.

According to the guidelines set out by the Patient Protective and Affordable Care Act — also called ObamaCare — states had until Sept. 30 to choose the “essential health benefits,” or minimums, that would be covered under state exchanges. The exchanges would provide policy options for those who either can’t afford insurance or don’t have access to insurance.

“Unfortunately, too many questions persist for the state of Iowa to make an informed decision about its preferred Essential Health Benefits Package,” Iowa Insurance Commissioner Susan Voss wrote in her Oct. 1 letter to U.S. Secretary of Health and Human Services Kathleen Sebelius. “The state of Iowa will await further information via a formal rule-making process before making a decision on an Essential Health Benefits package that will significantly impact the state’s health insurance market.”

Iowa was not the only state to miss the deadline. Only 16 states and Washington, D.C., met the target date, according to the Kaiser Foundation, although another 16 states indicated they would submit their plans in the coming weeks.

Branstad says he’s being pragmatic. Republicans, from presidential nominee Mitt Romney on down, have taken aim at the health care program and say its days are numbered if Republicans take power on Nov. 6.

“He’s not being pragmatic, he’s playing politics,” said Sen. Jack Hatch, D-Des Moines, co-chair of the Legislature’s Health and Human Services Appropriation Committee and the Senate Democrats’ leading expert on the health care law. “This is a big problem. It’s infuriating that you have a governor willing to defy federal law for political purposes.”

Because Iowa missed the September deadline, the U.S. Department of Health and Human Services could choose the state’s essential health benefits. These would be determined by looking at what the biggest insurers in the state offer as their minimum coverage options.

Hatch said the governor is being hypocritical because the blown deadline gave the federal government an excuse to get involved in the state exchange, even though Branstad has said that’s exactly what he doesn’t want.

“Gov. Branstad does not believe he is asking too much to have clear answers from the federal government on the unclear issues of ObamaCare. Instead of answers, we have been stiff-armed at every turn,” Branstad spokesman Tim Albrecht wrote in an email. “Delaying such answers may serve political purposes, especially those of Jack Hatch’s party, but that delay doesn’t serve Iowans.”

Meanwhile, Iowa has accepted close to $30 million in federal grants offered to states to set up health care exchanges. Administration officials say the money has mostly been spent on infrastructure — computer hardware, software and training — that could be used for other purposes if the law is overturned.

Donna Hoffman, chairwoman of the University of Northern Iowa political science department, said by taking the money on one hand and missing deadlines on the other, the governor is “being cagey.”

“This has been a waiting game all along,” Hoffman said. “First it was for the Supreme Court decision, which upheld the law. Now it’s the election.”

The next deadline is Nov. 16. It requires that every state have a blueprint in place for its state-run exchange.

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