Medicaid Privatization in Iowa and the Market State

I hadn’t written on health care for awhile, but sadly, whenever I put on my yellow waders and dig in, I keep coming up with stuff that’s so nasty it’s hard to stop. This post was inspired a link that a reader from Iowa, incited by a previous post on ObamaCare’s crapification, threw over the transom (so please, readers, keep doing that). And I hear Iowa has a caucus of some sort coming up, plus Iowans like to meet and speak with their candidates personally, and the issues with Iowa’s for-profit privatization of Medicaid menagement involve a few billion and several hundred thousand lives, so it seems like this is the sort of issue that might be brought up, face-to-face, when a candidate is trapped in somebody’s living room, especially since the Feds have to give Iowa a waiver for the program to proceed. Mostly, I’m going to follow the money, instead of mere human suffering.

First, I’ll summarize Iowa’s plan to use for-profit contractors to manage Medicaid; then I’ll look at the signs of corruption in the contracting process, which as we shall see would give pause even if we were looking at Albany or (heaven forfend) Chicago, despite Iowa’s reputation for clean government; then I will show that the premises for Iowa’s privatization effort are false, since experience shows that their program will neither save money nor improve care, and there are not-for-profit alternatives available; and lastly, I’ll glance at the ideological underpinnings for these efforts (“the market state”).

– naked capitalism

Read the full article here.