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SF558 • 2026

A bill for an act relating to Medicaid program improvements, making an appropriation, and providing penalties.

A bill for an act relating to Medicaid program improvements, making an appropriation, and providing penalties.

Budget
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
TRONE GARRIOTT, DONAHUE, PETERSEN, ZIMMER and WAHLS
Last action
2025-03-10
Official status
Subcommittee: Klimesh, Costello, and Trone Garriott. S.J. 467 .
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

A bill for an act relating to Medicaid program improvements, making an appropriation, and providing penalties.

A bill for an act relating to Medicaid program improvements, making an appropriation, and providing penalties.

What This Bill Does

  • A bill for an act relating to Medicaid program improvements, making an appropriation, and providing penalties.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-03-10 Iowa Legislature

    Subcommittee: Klimesh, Costello, and Trone Garriott. S.J. 467 .

  2. 2025-03-06 Iowa Legislature

    Introduced, referred to Health and Human Services. S.J. 432 .

Official Summary Text

A bill for an act relating to Medicaid program improvements, making an appropriation, and providing penalties.

Current Bill Text

Read the full stored bill text
Senate

File

558

-

Introduced

SENATE

FILE

558

BY

TRONE

GARRIOTT

,

DONAHUE

,

PETERSEN

,

ZIMMER

,

and

WAHLS

A

BILL

FOR

An

Act

relating

to

Medicaid

program

improvements,

making

an

1

appropriation,

and

providing

penalties.

2

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

3

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558

DIVISION

I

1

MEDICAID

LONG-TERM

SERVICES

AND

SUPPORTS

POPULATION

MEMBERS

——

2

PROVISION

OF

CONFLICT-FREE

SERVICES

3

Section

1.

MEDICAID

LONG-TERM

SERVICES

AND

SUPPORTS

4

POPULATION

MEMBERS

——

PROVISION

OF

CONFLICT-FREE

SERVICES.

The

5

department

of

health

and

human

services

shall

adopt

rules

6

pursuant

to

chapter

17A

to

ensure

that

services

are

provided

7

under

the

Medicaid

program

to

members

of

the

long-term

8

services

and

supports

population

in

a

conflict-free

manner.

9

Specifically,

case

management

services

shall

be

provided

by

10

independent

providers

and

supports

intensity

scale

assessments

11

shall

be

performed

by

independent

assessors.

12

DIVISION

II

13

LONG-TERM

SERVICES

AND

SUPPORTS

POPULATION

MEMBERS

——

OPTION

14

FOR

FEE-FOR-SERVICE

PROGRAM

ADMINISTRATION

15

Sec.

2.

LONG-TERM

SERVICES

AND

SUPPORTS

POPULATION

MEMBERS

16

——

OPTION

FOR

FEE-FOR-SERVICE

PROGRAM

ADMINISTRATION.

The

17

department

of

health

and

human

services

shall

require

each

18

Medicaid

managed

care

organization

with

whom

the

department

19

executes

a

contract

to

administer

the

Iowa

high-quality

20

health

care

initiative

as

established

by

the

department,

21

to

provide

the

option

to

Medicaid

long-term

services

and

22

supports

population

members

to

enroll

in

or

transition

to

23

fee-for-service

Medicaid

program

administration

rather

than

24

managed

care

administration.

The

department

shall

amend

any

25

contract,

request

any

Medicaid

state

plan

amendment,

and

adopt

26

rules

pursuant

to

chapter

17A,

as

necessary,

to

administer

this

27

section.

The

rules

shall

include

the

process

for

transitioning

28

a

current

Medicaid

long-term

services

and

supports

population

29

member

to

fee-for-service

program

administration.

30

DIVISION

III

31

LONG-TERM

SERVICES

AND

SUPPORTS

POPULATION

MEMBERS

——

POLICY

32

FOR

DENIAL

OF

CARE

33

Sec.

3.

LONG-TERM

SERVICES

AND

SUPPORTS

POPULATION

MEMBERS

34

——

POLICY

FOR

DENIAL

OF

CARE.

The

department

of

health

35

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and

human

services

shall

require

each

Medicaid

managed

care

1

organization

with

whom

the

department

executes

a

contract

2

under

the

Medicaid

program

to

maintain

an

authorized

member’s

3

Medicaid

long-term

services

and

supports

unless

the

member’s

4

health

care

provider

determines

a

change

in

the

long-term

5

services

and

supports

is

medically

necessary.

The

inability

of

6

a

member

who

is

authorized

for

long-term

services

and

supports

7

to

utilize

all

approved

service

hours,

including

respite

care,

8

shall

not

result

in

a

reduction

in

authorized

services

unless

9

there

is

medical

evidence

that

the

services

are

medically

10

unnecessary

for

the

member.

11

DIVISION

IV

12

MEDICAID

WORKFORCE

PROGRAM

13

Sec.

4.

WORKFORCE

RECRUITMENT,

RETENTION,

AND

TRAINING

14

PROGRAMS.

The

department

of

health

and

human

services

shall

15

contractually

require

any

managed

care

organization

with

whom

16

the

department

executes

a

contract

under

the

Medicaid

program

17

to

collaborate

with

the

department

and

stakeholders

to

develop

18

and

administer

a

workforce

recruitment,

retention,

and

training

19

program

to

provide

adequate

access

to

appropriate

services,

20

including

but

not

limited

to

services

to

older

Iowans.

21

The

department

shall

ensure

that

any

program

developed

is

22

administered

in

a

coordinated

and

collaborative

manner

across

23

all

contracting

managed

care

organizations

and

shall

require

24

the

managed

care

organizations

to

submit

quarterly

progress

and

25

outcomes

reports

to

the

department.

26

DIVISION

V

27

PROVIDER

APPEALS

PROCESS

——

EXTERNAL

REVIEW

28

Sec.

5.

MEDICAID

MANAGED

CARE

ORGANIZATION

APPEALS

PROCESS

29

——

EXTERNAL

REVIEW

——

PENALTY.

30

1.

a.

A

Medicaid

managed

care

organization

under

contract

31

with

the

department

of

health

and

human

services

shall

include

32

in

any

written

response

to

a

Medicaid

provider

under

contract

33

with

the

managed

care

organization

that

reflects

a

final

34

adverse

determination

of

the

managed

care

organization’s

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internal

appeal

process

relative

to

an

appeal

filed

by

the

1

Medicaid

provider,

all

of

the

following:

2

(1)

A

statement

that

the

Medicaid

provider’s

internal

3

appeal

rights

within

the

managed

care

organization

have

been

4

exhausted.

5

(2)

A

statement

that

the

Medicaid

provider

is

entitled

to

6

an

external

independent

third-party

review

pursuant

to

this

7

section.

8

(3)

The

requirements

for

requesting

an

external

independent

9

third-party

review.

10

b.

If

a

managed

care

organization’s

written

response

does

11

not

comply

with

the

requirements

of

paragraph

“a”,

the

managed

12

care

organization

shall

pay

to

the

affected

Medicaid

provider

a

13

penalty

not

to

exceed

one

thousand

dollars.

14

2.

a.

A

Medicaid

provider

who

has

been

denied

the

provision

15

of

a

service

to

a

Medicaid

member

or

a

claim

for

reimbursement

16

for

a

service

rendered

to

a

Medicaid

member,

and

who

has

17

exhausted

the

internal

appeal

process

of

a

managed

care

18

organization,

shall

be

entitled

to

an

external

independent

19

third-party

review

of

the

managed

care

organization’s

final

20

adverse

determination.

21

b.

To

request

an

external

independent

third-party

review

of

22

a

final

adverse

determination

by

a

managed

care

organization,

23

an

aggrieved

Medicaid

provider

shall

submit

a

written

request

24

for

such

review

to

the

managed

care

organization

within

sixty

25

calendar

days

of

receiving

the

final

adverse

determination.

26

c.

A

Medicaid

provider’s

request

for

an

external

27

independent

third-party

review

shall

include

all

of

the

28

following:

29

(1)

Identification

of

each

specific

issue

and

dispute

30

directly

related

to

the

final

adverse

determination

issued

by

31

the

managed

care

organization.

32

(2)

A

statement

of

the

basis

upon

which

the

Medicaid

33

provider

believes

the

managed

care

organization’s

determination

34

to

be

erroneous.

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(3)

The

Medicaid

provider’s

designated

contact

information,

1

including

name,

mailing

address,

phone

number,

fax

number,

and

2

email

address.

3

3.

a.

Within

five

business

days

of

receiving

a

Medicaid

4

provider’s

request

for

an

external

independent

third-party

5

review

pursuant

to

this

subsection,

the

managed

care

6

organization

shall

do

all

of

the

following:

7

(1)

Confirm

to

the

Medicaid

provider’s

designated

contact,

8

in

writing,

that

the

managed

care

organization

has

received

the

9

request

for

review.

10

(2)

Notify

the

department

of

health

and

human

services

of

11

the

Medicaid

provider’s

request

for

review.

12

(3)

Notify

the

affected

Medicaid

member

of

the

Medicaid

13

provider’s

request

for

review,

if

the

review

is

related

to

the

14

denial

of

a

service.

15

b.

If

the

managed

care

organization

fails

to

satisfy

the

16

requirements

of

this

subsection,

the

Medicaid

provider

shall

17

automatically

prevail

in

the

review.

18

4.

a.

Within

fifteen

calendar

days

of

receiving

a

Medicaid

19

provider’s

request

for

an

external

independent

third-party

20

review,

the

managed

care

organization

shall

do

all

of

the

21

following:

22

(1)

Submit

to

the

department

of

health

and

human

services

23

all

documentation

submitted

by

the

Medicaid

provider

in

the

24

course

of

the

managed

care

organization’s

internal

appeal

25

process.

26

(2)

Provide

the

managed

care

organization’s

designated

27

contact

information,

including

name,

mailing

address,

phone

28

number,

fax

number,

and

email

address.

29

b.

If

a

managed

care

organization

fails

to

satisfy

the

30

requirements

of

this

subsection,

the

Medicaid

provider

shall

31

automatically

prevail

in

the

review.

32

5.

A

request

for

an

external

independent

third-party

review

33

shall

automatically

extend

the

deadline

to

file

an

appeal

for

a

34

contested

case

hearing

under

chapter

17A,

pending

the

outcome

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of

the

external

independent

third-party

review,

until

thirty

1

calendar

days

following

receipt

of

the

review

decision

by

the

2

Medicaid

provider.

3

6.

Upon

receiving

notification

of

a

request

for

an

external

4

independent

third-party

review,

the

department

of

health

and

5

human

services

shall

do

all

of

the

following:

6

a.

Assign

the

review

to

an

external

independent

third-party

7

reviewer.

8

b.

Notify

the

managed

care

organization

of

the

identity

of

9

the

external

independent

third-party

reviewer.

10

c.

Notify

the

Medicaid

provider’s

designated

contact

of

the

11

identity

of

the

external

independent

third-party

reviewer.

12

7.

The

department

of

health

and

human

services

shall

deny

a

13

request

for

an

external

independent

third-party

review

if

the

14

requesting

Medicaid

provider

fails

to

exhaust

the

managed

care

15

organization’s

internal

appeal

process

or

fails

to

submit

a

16

timely

request

for

an

external

independent

third-party

review

17

pursuant

to

this

section.

18

8.

a.

Multiple

appeals

through

the

external

independent

19

third-party

review

process

regarding

the

same

Medicaid

member,

20

a

common

question

of

fact,

or

the

interpretation

of

common

21

applicable

regulations

or

reimbursement

requirements

may

22

be

combined

and

determined

in

one

action

upon

request

of

a

23

party

in

accordance

with

rules

and

regulations

adopted

by

the

24

department

of

health

and

human

services.

25

b.

The

Medicaid

provider

that

initiated

a

request

for

26

an

external

independent

third-party

review,

or

one

or

more

27

other

Medicaid

providers,

may

add

claims

to

such

an

existing

28

external

independent

third-party

review

request

following

the

29

exhaustion

of

any

applicable

managed

care

organization

internal

30

appeal

process,

if

the

claims

involve

a

common

question

of

31

fact

or

interpretation

of

common

applicable

regulations

or

32

reimbursement

requirements.

33

9.

Documentation

reviewed

by

the

external

independent

34

third-party

reviewer

shall

be

limited

to

documentation

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submitted

pursuant

to

subsection

4.

1

10.

An

external

independent

third-party

reviewer

shall

do

2

all

of

the

following:

3

a.

Conduct

an

external

independent

third-party

review

4

of

any

claim

submitted

to

the

reviewer

pursuant

to

this

5

subsection.

6

b.

Within

thirty

calendar

days

from

receiving

the

request

7

for

an

external

independent

third-party

review

from

the

8

department

of

health

and

human

services

and

the

documentation

9

submitted

pursuant

to

subsection

4,

issue

the

reviewer’s

final

10

decision

to

the

Medicaid

provider’s

designated

contact,

the

11

managed

care

organization’s

designated

contact,

the

department

12

of

health

and

human

services,

and

the

affected

Medicaid

member

13

if

the

decision

involves

a

denial

of

service.

The

reviewer

may

14

extend

the

time

to

issue

a

final

decision

by

up

to

fourteen

15

calendar

days

upon

agreement

of

all

parties

to

the

review.

16

11.

The

department

of

health

and

human

services

shall

17

enter

into

a

contract

with

an

external

independent

review

18

organization

that

does

not

have

a

conflict

of

interest

with

the

19

department

of

health

and

human

services

or

any

managed

care

20

organization

to

conduct

the

external

independent

third-party

21

reviews

under

this

section.

22

a.

A

party,

including

the

affected

Medicaid

member

or

23

Medicaid

provider,

may

appeal

a

final

decision

of

the

external

24

independent

third-party

reviewer

in

a

contested

case

proceeding

25

in

accordance

with

chapter

17A

within

thirty

calendar

days

from

26

receiving

the

final

decision.

A

final

decision

in

a

contested

27

case

proceeding

is

subject

to

judicial

review.

28

b.

The

final

decision

of

an

external

independent

29

third-party

reviewer

conducted

pursuant

to

this

section

shall

30

also

direct

the

nonprevailing

party

to

pay

an

amount

equal

to

31

the

costs

of

the

review

to

the

external

independent

third-party

32

reviewer.

Any

payment

ordered

pursuant

to

this

subsection

33

shall

be

stayed

pending

any

appeal

of

the

review.

If

the

34

final

outcome

of

any

appeal

is

to

reverse

the

decision

of

the

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external

independent

third-party

reviewer,

the

nonprevailing

1

party

on

appeal

shall

pay

the

costs

of

the

review

to

the

2

external

independent

third-party

reviewer

within

forty-five

3

calendar

days

of

entry

of

the

final

order.

4

DIVISION

VI

5

MEMBER

DISENROLLMENT

FOR

GOOD

CAUSE

6

Sec.

6.

MEMBER

DISENROLLMENT

FOR

GOOD

CAUSE.

The

department

7

of

health

and

human

services

shall

contractually

require

all

8

Medicaid

managed

care

organizations

to

issue

a

decision

in

9

response

to

a

member’s

request

for

disenrollment

for

good

cause

10

within

ten

days

of

the

date

the

member

submits

the

request

to

11

the

Medicaid

managed

care

organization

utilizing

the

Medicaid

12

managed

care

organization’s

grievance

process.

The

department

13

shall

adopt

rules

pursuant

to

chapter

17A

to

administer

this

14

division.

15

DIVISION

VII

16

UNIFORM,

SINGLE

CREDENTIALING

17

Sec.

7.

MEDICAID

PROGRAM

——

USE

OF

UNIFORM

AUTHORIZATION

18

CRITERIA

AND

SINGLE

CREDENTIALING

VERIFICATION

19

ORGANIZATION.

The

department

of

health

and

human

services

20

shall

develop

uniform

authorization

criteria

for,

and

21

shall

utilize

a

request

for

proposals

process

to

procure,

22

a

single

credentialing

verification

organization

to

be

23

utilized

in

credentialing

and

recredentialing

providers

for

24

both

the

Medicaid

managed

care

and

fee-for-service

payment

25

and

delivery

systems.

The

department

or

health

and

human

26

services

shall

contractually

require

all

Medicaid

managed

care

27

organizations

to

apply

the

uniform

authorization

criteria

and

28

to

accept

verified

information

from

the

single

credentialing

29

verification

organization

procured

by

the

department,

and

shall

30

contractually

prohibit

Medicaid

managed

care

organizations

31

from

requiring

additional

credentialing

information

from

a

32

provider

in

order

to

participate

in

the

Medicaid

managed

care

33

organization’s

provider

network.

34

DIVISION

VIII

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MEDICAID

MANAGED

CARE

OMBUDSMAN

PROGRAM

——

APPROPRIATION

1

Sec.

8.

OFFICE

OF

LONG-TERM

CARE

OMBUDSMAN

——

MEDICAID

2

MANAGED

CARE

OMBUDSMAN.

3

1.

There

is

appropriated

from

the

general

fund

of

the

4

state

to

the

department

of

health

and

human

services

office

of

5

long-term

care

ombudsman

for

the

fiscal

year

beginning

July

6

1,

2025,

and

ending

June

30,

2026,

in

addition

to

any

other

7

funds

appropriated

from

the

general

fund

of

the

state

to,

8

and

in

addition

to

any

other

full-time

equivalent

positions

9

authorized

for,

the

office

of

long-term

care

ombudsman

for

the

10

same

purpose,

the

following

amount,

or

so

much

thereof

as

is

11

necessary,

to

be

used

for

the

purposes

designated:

12

For

the

purposes

of

the

Medicaid

managed

care

ombudsman

13

program

including

for

salaries,

support,

administration,

14

maintenance,

and

miscellaneous

purposes,

and

for

not

more

than

15

the

following

full-time

equivalent

positions:

16

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

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.

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.

.

.

.

.

.

.

.

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.

.

.

.

.

.

.

.

.

.

.

$

300,000

17

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

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.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

FTEs

2.50

18

2.

The

funding

appropriated

and

the

full-time

equivalent

19

positions

authorized

under

this

section

are

in

addition

to

any

20

other

funds

appropriated

from

the

general

fund

of

the

state

and

21

actually

expended,

and

any

other

full-time

equivalent

positions

22

authorized

and

actually

filled

as

of

July

1,

2025,

for

the

23

Medicaid

managed

care

ombudsman

program.

24

3.

Any

funds

appropriated

to

and

any

full-time

equivalent

25

positions

authorized

for

the

office

of

long-term

care

ombudsman

26

for

the

Medicaid

managed

care

ombudsman

program

for

the

fiscal

27

year

beginning

July

1,

2025,

and

ending

June

30,

2026,

shall

28

be

used

exclusively

for

the

Medicaid

managed

care

ombudsman

29

program.

30

4.

The

additional

full-time

equivalent

positions

authorized

31

in

this

section

for

the

Medicaid

managed

care

ombudsman

program

32

shall

be

filled

no

later

than

September

1,

2025.

33

5.

The

office

of

long-term

care

ombudsman

shall

include

34

in

the

Medicaid

managed

care

ombudsman

program

report,

on

a

35

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quarterly

basis,

the

disposition

of

resources

for

the

Medicaid

1

managed

care

ombudsman

program

including

actual

expenditures

2

and

a

full-time

equivalent

positions

summary

for

the

prior

3

quarter.

4

DIVISION

IX

5

HEALTH

POLICY

OVERSIGHT

COMMITTEE

MEETINGS

6

Sec.

9.

Section

2.45,

subsection

5,

Code

2025,

is

amended

7

to

read

as

follows:

8

5.

The

legislative

health

policy

oversight

committee,

9

which

shall

be

composed

of

ten

members

of

the

general

10

assembly,

consisting

of

five

members

from

each

house,

to

11

be

appointed

by

the

legislative

council.

The

legislative

12

health

policy

oversight

committee

may

shall

meet

at

least

two

13

times,

annually

,

during

the

legislative

interim

to

provide

14

continuing

oversight

for

Medicaid

managed

care,

and

to

ensure

15

effective

and

efficient

administration

of

the

program,

address

16

stakeholder

concerns,

monitor

program

costs

and

expenditures,

17

and

make

recommendations.

18

DIVISION

X

19

MANAGED

CARE

ORGANIZATIONS

——

ANNUAL

REPORT

ON

PROFIT

20

Sec.

10.

MANAGED

CARE

ORGANIZATIONS

——

REPORT

ON

21

PROFIT.

The

department

of

health

and

human

services

shall

22

require

each

Medicaid

managed

care

organization

with

whom

the

23

department

executes

a

contract

under

the

Medicaid

program

24

to

annually

submit

a

report

by

March

1

to

the

department

25

detailing

the

profit

the

managed

care

organization

received

26

from

administering

Medicaid

care

during

the

immediately

27

preceding

calendar

year,

and

the

methodology

used

to

calculate

28

the

profit.

The

department

may

select

an

independent

auditor

29

to

verify

each

managed

care

organization’s

profit

report.

The

30

department

shall

make

each

managed

care

organization’s

report

31

publicly

available

on

the

department’s

internet

site.

32

EXPLANATION

33

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

34

the

explanation’s

substance

by

the

members

of

the

general

assembly.

35

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This

bill

relates

to

the

Medicaid

program.

1

Division

I

of

the

bill

requires

the

department

of

health

2

and

human

services

(HHS)

to

adopt

administrative

rules

to

3

ensure

that

services

are

provided

to

the

Medicaid

long-term

4

services

and

supports

(LTSS)

population

in

a

conflict-free

5

manner.

Specifically,

the

bill

requires

that

case

management

6

services

shall

be

provided

by

independent

providers

and

that

7

the

supports

intensity

scale

assessments

are

performed

by

8

independent

assessors.

9

Division

II

of

the

bill

directs

HHS

to

require

each

Medicaid

10

managed

care

organization

(MCO)

with

whom

HHS

executes

a

11

contract,

to

provide

the

option

to

LTSS

population

members

to

12

enroll

in

or

transition

to

fee-for-service

Medicaid

program

13

administration

rather

than

managed

care

administration.

The

14

department

shall

amend

any

contract,

request

any

Medicaid

state

15

plan

amendment,

and

adopt

administrative

rules,

as

necessary,

16

to

administer

this

provision.

The

rules

shall

include

the

17

process

for

transitioning

a

current

LTSS

population

member

to

18

fee-for-service

program

administration.

19

Division

III

of

the

bill

directs

HHS

to

require

each

MCO

with

20

whom

HHS

executes

a

contract

to

maintain

an

authorized

member’s

21

LTSS

unless

the

member’s

health

care

provider

determines

a

22

change

in

the

LTSS

is

medically

necessary

for

the

member.

The

23

inability

of

a

member

who

is

authorized

for

LTSS

to

utilize

24

all

approved

service

hours,

including

respite

care,

shall

not

25

result

in

a

reduction

in

authorized

services

unless

there

is

26

medical

evidence

that

the

services

are

medically

unnecessary

27

for

the

member.

28

Division

IV

of

the

bill

requires

HHS

to

contractually

29

require

any

Medicaid

MCO

to

collaborate

with

HHS

and

30

stakeholders

to

develop

and

administer

a

workforce

recruitment,

31

retention,

and

training

program

to

provide

adequate

access

to

32

appropriate

services,

including

but

not

limited

to

services

33

to

older

Iowans.

The

department

shall

ensure

that

any

such

34

program

developed

is

administered

in

a

coordinated

and

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collaborative

manner

across

all

contracting

MCOs

and

shall

1

require

the

MCOs

to

submit

quarterly

progress

and

outcomes

2

reports

to

HHS.

3

Division

V

of

the

bill

establishes

an

external

independent

4

third-party

review

process

for

Medicaid

providers

for

the

5

review

of

final

adverse

determinations

of

the

MCOs’

internal

6

appeals

processes.

The

division

provides

that

a

final

7

decision

of

an

external

independent

third-party

reviewer

may

8

be

reviewed

in

a

contested

case

proceeding

pursuant

to

Code

9

chapter

17A,

and

ultimately

is

subject

to

judicial

review.

The

10

bill

provides

a

civil

penalty

for

an

MCO

that

does

not

comply

11

with

the

written

response

requirements

relating

to

an

adverse

12

determination.

13

Division

VI

of

the

bill

relates

to

member

disenrollment

14

for

good

cause

during

the

12

months

of

closed

enrollment

15

between

open

enrollment

periods.

The

bill

requires

HHS

to

16

contractually

require

all

Medicaid

MCOs

to

issue

a

decision

17

in

response

to

a

member’s

request

for

disenrollment

for

good

18

cause

within

10

days

of

the

date

the

member

submits

the

request

19

to

the

MCO

utilizing

the

MCO’s

grievance

process

and

to

adopt

20

administrative

rules

to

administer

the

division.

21

Division

VII

of

the

bill

requires

the

HHS

to

develop

22

uniform

authorization

criteria

for,

and

to

utilize

a

request

23

for

proposals

process

to

procure,

a

single

credentialing

24

verification

organization

to

be

utilized

in

credentialing

25

and

recredentialing

providers

for

the

Medicaid

managed

care

26

and

fee-for-service

payment

and

delivery

systems.

The

bill

27

requires

HHS

to

contractually

require

all

Medicaid

MCOs

to

28

apply

the

uniform

authorization

criteria,

to

accept

verified

29

information

from

the

single

credentialing

verification

30

organization

procured

by

HHS,

and

to

contractually

prohibit

the

31

MCOs

from

requiring

additional

credentialing

information

from

a

32

provider

in

order

to

participate

in

the

Medicaid

MCO’s

provider

33

network.

34

Division

VIII

of

the

bill

relates

to

the

office

of

long-term

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care

ombudsman

(OLTCO)

and

the

Medicaid

managed

care

ombudsman

1

program

(MCOP).

2

For

fiscal

year

2025-2026,

the

bill

appropriates

$300,000

3

from

the

general

fund

of

the

state,

in

addition

to

any

other

4

funds

appropriated

from

the

general

fund

of

the

state

to,

5

and

authorizes

2.50

FTEs

in

addition

to

any

other

full-time

6

equivalent

(FTE)

positions

authorized

for,

HHS

for

the

OLTCO

7

for

the

purposes

of

the

MCOP.

The

funding

appropriated

and

the

8

FTE

positions

authorized

under

the

bill

are

in

addition

to

any

9

other

funds

appropriated

from

the

general

fund

of

the

state

and

10

actually

expended,

and

any

other

FTE

positions

authorized

and

11

actually

filled

as

of

July

1,

2025,

for

the

MCOP.

12

The

bill

requires

that

any

funds

appropriated

to

and

any

13

full-time

equivalent

positions

authorized

for

the

OLTCO

for

the

14

MCOP

for

fiscal

year

2025-2026

shall

be

used

exclusively

for

15

the

MCOP.

The

additional

FTE

positions

authorized

in

the

bill

16

for

the

MCOP

shall

be

filled

no

later

than

September

1,

2025.

17

The

bill

requires

the

OLTCO

to

include

in

the

MCOP

report,

on

18

a

quarterly

basis,

the

disposition

of

resources

for

the

MCOP

19

including

expenditures

and

an

FTE

positions

summary

for

the

20

prior

quarter.

21

Division

IX

amends

the

provision

regarding

the

meetings

of

22

the

health

policy

oversight

committee

(HPOC)

of

the

legislative

23

council.

Current

law

provides

that

HPOC

may

meet

annually.

24

The

bill

provides

that

HPOC

shall

meet,

and

further

requires

25

that

HPOC

meet

at

least

two

times,

annually,

during

the

26

legislative

interim.

27

Division

X

of

the

bill

directs

HHS

to

require

each

MCO

with

28

whom

HHS

executes

a

contract

to

annually

submit

a

report

by

29

March

1

to

HHS

detailing

the

profit

the

MCO

received

from

30

administering

Medicaid

care

during

the

immediately

preceding

31

calendar

year,

and

the

methodology

the

MCO

used

to

calculate

32

the

profit.

HHS

may

select

an

independent

auditor

to

verify

33

each

MCO’s

report.

HHS

shall

make

each

MCO’s

report

publicly

34

available

on

HHS’s

internet

site.

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