Guy Vander Linden Weekly Update
Rep. Guy Vander Linden (R)
Next week is funnel week at the Capitol. We are working hard to push legislation, which best serves you all, through on the House side before the mandatory cut off. Below you will find information about the most recent happenings here at the Capitol. If you have any questions, I encourage you to contact me for information.
Medicaid Modernization
Over 85,866 provider contracts have been signed as of the end of January. This represents over 95% of all possible provider contracts have been signed based on the Iowa Medicaid Fee-For-Service network in the past
12 months (out of 89,883)
All four major hospital systems have signed with a managed care organization (Genisis, Mercy, UIHC, UnityPoint)
An administrative law judge indicated Iowa’s Medicaid Modernization procurement process was “thoughtful and diligent.”
Benefits under managed care do not change, but the managed care organizations will provide over 80+ value-added services Medicaid patients do not currently receive.
Patients can switch to a different managed care organization at any time for any reason between now and May 17, 2016. After that date, patients can still switch for good cause (e.g., provider not signed up with a MCO). There will also be an annual open enrollment period in the late fall to choose a different managed care organization or remain.
Between January 12 and February 4, Iowa Medicaid member and provider-services hosted day-long road shows in 11 cities across the state. Over 2,300 providers have attended or signed up to attend the training. More trainings will be held based on demand.
34,406 Medicaid patients have actively selected an MCO as of 1-22-16.
Medicaid Modernization will create predictability and sustainability in the Medicaid budget. In FY 2017, Medicaid costs will increase $41 million even with managed care. Without it, costs would increase $151 million.
Medicaid is the second largest program in state government. It’s growth threatens the state’s ability to provide additional funding to schools.
According to LSA, state revenue grew by 2.7% between 2006 and 2015. Funding for school grew at 4.3%. While funding for Medicaid grew by 9.1%.
If Senate Democrats continued sabotage of Medicaid Modernization succeeds, the Legislature will have to find an additional $121.8 million in the FY 2017 budget to maintain the status quo in Medicaid. K-12 SSA already is received nearly all of the $153 million in projected revenue growth. If Medicaid Modernization isn’t implemented, K-12 schools will likely feel the impact through reduced funding.
Participate in the DOT Survey!
Currently the DOT is the process of updating their long-range transportation plan. This is a practice that the DOT engages in every 5 years, as required by Iowa law. The current long-range plan extends transportation planning to 2045. As part of this process, the DOT is asking for public opinions.
The DOT engages in creating a long-term transportation plan, as transportation infrastructure can take several years to develop and several changes can occur that would affect infrastructure. Some of the changes that the DOT expects to occur by 2045 include: Iowa gaining half a million people, a changing economy where jobs shift from agriculture to health care, increases in agricultural productivity, increased freight movement, and increasing use of technology which could lead to self-driving vehicles. Economic, technology, demographic, and population changes are important for the DOT to anticipate and plan for because these changes shall ultimately impact aviation, highway travel, public transit, railways, and pedestrians. If the DOT fails to plan appropriately, this could result in an ineffective and inefficient transportation system.
The last long-range transportation plan was initiated in 2010 and stemmed out into 2040. The 2015 long-term plan will likely mirror the structure of the 2010 plan. This 2010 long-range plan concluded that the state needs to “efficiently manage the transportation system through a philosophy of stewardship”, that there is a funding shortfall that if not properly fixed with new incomes could worsen overtime, and “that action must be taken immediately to ensure the future viability of the transportation system”.
Since the transportation system affects present and future Iowans, it is important to take the time to complete the survey. Public opinion will help the DOT create a better Iowa. The survey can be found at https://iowainmotion2045.metroquest.com/. The survey includes questions related to investment areas, best practices, ineffective practices, and strategies. Some of the questions ask Iowans their opinions about the future, while other questions ask Iowans questions about the present. There are multiple choice questions, as well as questions that permit a written answer.
Business Property Tax Credit Applications Due
The Business Property Tax Credit was enacted as part of the larger property tax reform bill in 2013. The credit is available for certain commercial, industrial, and railroad properties. A credit is available to individual parcels as well as property units. One credit can be obtained for each parcel or unit. Property that is not eligible includes agricultural property, residential property, mobile home parks, nursing homes, and apartment buildings.
The Business Property Tax Credit application for assessment year 2015 is due March 1 of this year. After this round, applications will be due on July 1, for the current assessment year. (Applications for the 2016 assessment year are due July 1, 2016). The application is to be submitted to the city or country where the property is located. The amount of the credit depends on how many applications are received for the credit statewide. The legislature appropriates $125 million annually to the credit. The application can be found here: https://tax.iowa.gov/sites/files/idr/forms1/54024_2.pdf.
