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News Brief

Sept. 18, 2018Des Moines, IA |  By: AP

IA governor accused of "Pay for Play"

Iowa Democrats are accusing Governor Kim Reynolds of a "pay for play" arrangement by accepting campaign contributions from a company that provides Medicaid services under Iowa's privatized health care program for
poor and disabled residents.

Iowa Democratic Party Chairman Troy Price said Monday the Reynolds campaign received $1,000 in December from Anthem, the parent company of Amerigroup, months before the state renewed its Medicaid contract. Another donation of $1,500 was made August 22, two days before the state announced Amerigroup and United Health Care would get a $100 million increase in state funding.

Reynolds' staff spokeswoman Brenna Smith says Medicaid funding is based on recommendations from the Department of Human Services and its independent actuary is based on expected medical costs. Selections must be approved by a federal agency.

Campaign spokesman Pat Garrett says accusations that payments were linked to the contracts are "as false as they are desperate."

The state is dealing with persistent complaints that Medicaid services deteriorated under privatization and the promised millions of dollars in savings haven't materialized.