Analysis shows Medicaid expansion is working in Iowa

The Iowa Hospital Association was one of many health care organizations that advocated strongly for Medicaid expansion. A new analysis of care provided by Iowa hospitals shows why.

Scott McIntyre highlighted the key findings on the Iowa Hospital Association’s blog yesterday.

During the first six months of this year, the number of people hospitalized in Iowa without insurance fell by 45.7 percent compared with the same period last year, an IHA analysis has found.  The analysis is based on data collected from 101 Iowa hospitals from January through June.

According to the study, out of about 159,000 hospital discharges from January to June in 2014 and 2013, 4,445 patients were uninsured this year compared with 8,181 in 2013.

[…] Because of Medicaid expansion, in a six-month span, Iowa hospitals cared for fewer uninsured patients in all settings, including patients admitted for inpatient care as well as those seeking care at hospital emergency rooms and at outpatient clinics.  Similar results are being seen in other states that expanded Medicaid under the Affordable Care Act. […]

For the period January 1-June 30, overall inpatient admissions at Iowa hospitals declined 4.4 percent compared with the same period in 2013.  Within that decline, the number of uninsured hospitalized patients with no source of payment for their health care fell by 45.7 percent in 2014.

Additionally, fears that expanding coverage would make care so easily accessible that use of hospital emergency rooms would rise to unprecedented levels have not materialized, the IHA analysis found.  Total visits to emergency rooms increased less than 1 percent when comparing the six-month spans in 2013 and 2014, despite approximately 30,000 patients with new policies purchased through the Health Insurance Marketplace.

With more Iowans now insured, hospitals’ charity care losses fell 18.5 percent, yielding a total six-month improvement of $32.5 million.

During the state legislature’s 2013 session, Iowa House Republicans and Governor Terry Branstad refused to expand Medicaid, but agreed to create an “Iowa Health and Wellness Plan” as a compromise. The arrangement was more complicated and more expensive than simply expanding Medicaid as foreseen under the 2010 federal health care reform law. Nevertheless, the deal was well worth it and is benefiting tens of thousands of Iowans.  

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