# State Government



State moves forward on merging human services, public health programs

The state of Iowa is looking for a private company to help integrate programs of the Iowa Department of Human Services (DHS) and Department of Public Health (IDPH).

Governor Kim Reynolds indicated this summer that she planned to merge many operations of the departments, which serve a combined total of more than 1 million Iowans. After Gerd Clabaugh announced plans to retire as IDPH director, Reynolds appointed DHS Director Kelly Garcia to serve simultaneously as interim director of public health, saying in a news release, “This is an opportunity to increase cooperation and collaboration between these two agencies to better serve Iowans.”

A Request for Proposal reveals more details about the planned scope of the reorganization, which is scheduled to begin early next year. Notably, control of infectious diseases is among the areas of the IDPH’s work that will be “excluded from the redesign.”

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Auditor: Iowa governor misused $21 million in COVID-19 relief funds

Governor Kim Reynolds erred in directing that $21 million in federal funding from the Coronavirus Aid, Relief and Economic Security (CARES) Act be used to cover the cost of a software system purchased before the COVID-19 pandemic, according to State Auditor Rob Sand.

Sand announced on October 19 that he and the U.S. Treasury Department’s Inspector General “have advised Iowa Governor Kim Reynolds that her decision to use millions of CARES Act dollars to help implement a new software system for state government was not an allowable use of the funds.” The Treasury Department and governor’s office did not respond to requests for confirmation and comment.

Sand also described as “questionable” the use of CARES Act funds to pay the governor’s permanent staff. Bleeding Heartland was first to report last month that Reynolds directed $448,449 in COVID-19 relief funds to pay a portion of salaries and benefits for 21 of her staffers from mid-March through June 2020. Sand warned that a federal audit may eventually determine that the payments did not meet requirements, so reallocating the funds to purposes clearly allowed under the CARES Act would be less risky for taxpayers.

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Corrections department belatedly shows concern for following Iowa law

The Iowa Board of Corrections violated state law in 2019 by failing to send Governor Kim Reynolds a list of individuals qualified to serve as director of the Department of Corrections, a state audit confirmed on September 21.

Department officials assured auditors they would share the findings with the Board of Corrections and advise members of their duties under state law. Spokesperson Cord Overton told Bleeding Heartland on September 22 the department had sent board members a copy of the findings and the relevant code section.

He didn’t explain why the department failed to ensure that the board complied with the statute last year, when Marty Ryan raised concerns with the acting director.

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Exclusive: Iowa governor used CARES Act funds to pay staff salaries

Governor Kim Reynolds directed that nearly $450,000 in federal funding the state of Iowa received through the Coronavirus Aid, Relief and Economic Security (CARES) Act be used to cover salaries and benefits for staff working in her office.

According to documents Bleeding Heartland obtained from the Iowa Department of Management through public records requests, the funds will cover more than 60 percent of the compensation for 21 employees from March 14 through June 30, 2020.

Reynolds has not disclosed that she allocated funds for that purpose, and reports produced by the nonpartisan Legislative Services Agency have not mentioned any CARES Act funding received by the governor’s office. Nor do any such disbursements appear on a database showing thousands of state government expenditures under the CARES Act.

The governor’s communications director Pat Garrett did not respond to four requests for comment over a two-week period.

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Iowa's state universities won't follow Trump's payroll tax deferral

Tens of thousands of employees at Iowa’s state universities will have their payroll taxes withheld as usual this fall, despite a recent executive order from President Donald Trump.

Trump moved last month to suspend payroll taxes from September 1 through December 31, 2020. Affected employees would see slightly higher paychecks for the next four months, but would have lower take-home pay from January through April 2021 as employers withhold double the amount for payroll taxes.

Josh Lehman, communications director for the Iowa Board of Regents, told Bleeding Heartland on September 9,

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Iowa state government won't follow Trump's payroll tax deferral

The agency handling payroll for Iowa’s executive, judicial, and legislative employees will not follow President Donald Trump’s recent executive order allowing payroll taxes to be deferred for the last four months of this calendar year.

Wendy Noce, the Centralized Payroll program manager for the Iowa Department of Administrative Services, announced the decision in a September 4 email to state entities.

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We live here, too: Dirt road Democrats in the arena

Former Republican C.J. Petersen on the values and issues that drove him to run for the Iowa Senate and become the new chair of the Carroll County Democrats. -promoted by Laura Belin

In the fall of 2010, I knocked on the door of a 70-year-old woman in rural Grundy Center, Iowa. I was there on a mission: get Terry Branstad and Kim Reynolds elected governor and lieutenant governor of Iowa.

The woman was kind, and we discussed the issues of the day–jobs, health care, and her feeling that our state and nation were on the wrong track. “Trust me,” I told her. “Terry Branstad and Kim Reynolds are ready to lead Iowa’s comeback.”

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Exclusive: Iowa's state medical director received 45% pay raise

The base pay for Iowa’s medical director and state epidemiologist Dr. Caitlin Pedati increased by 45 percent as the current fiscal year began on July 1, records obtained by Bleeding Heartland show. The additional $3,144 that Pedati began receiving per two-week pay period would translate to an extra $81,744 in base salary over twelve months.

The doctor leading the state’s COVID-19 pandemic response also received more than $55,000 in overtime pay from March through early July, even though her job class would not normally be eligible for overtime compensation.

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Iowa governor's proclamation creates confusion for schools

Randy Richardson: Governor Kim Reynolds’ latest proclamation appears to override all of the work done by school districts and strikes at the very heart of our long tradition of local control of school districts. -promoted by Laura Belin

Usually when an elected leader holds a press conference to offer additional guidance on a topic, everyone leaves with a deeper understanding of the issue. Unfortunately that wasn’t the case following Governor Kim Reynolds’ July 17 press conference on students returning to school amid the COVID-19 pandemic.

Instead, we got a new interpretation of a law that went into effect on July 1, which runs counter to much of the work schools have been doing.

Following the press conference, the governor released a proclamation that limits the ability of both public and private schools to offer remote learning and which loosens the current requirements on the qualifications for substitute teachers.

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Bill would allow more guns in Iowa's local government buildings, parks

Bridget Carberry Montgomery sounds the alarm about a bill Iowa Senate Republicans sent to the governor last week. Bleeding Heartland covered its provisions in detail after House Republicans approved the legislation in February. -promoted by Laura Belin

As a member of the Urbandale City Council, I have a responsibility to ensure the safety of residents, employees, and visitors to Urbandale. In that capacity, I implore Governor Kim Reynolds to veto House File 2502, because it interferes with our state’s long history of local control and makes our communities less safe.

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State auditor looking at Iowa's no-bid contracts for PPE

State Auditor Rob Sand is examining the no-bid contracts Iowa has signed to procure personal protective equipment (PPE), which has been in short supply across the country during the novel coronavirus pandemic.

A one-sentence statement released by the State Auditor’s Office on May 18 quoted Sand as saying, “Prior to last week’s coverage of a vendor whom has never before sold PPE receiving a $7 million no-bid contract for PPE, we had already begun collecting information about both no-bid contracts and the state’s PPE supply.”

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COVID-19 crisis underscores how vital information is

Randy Evans is executive director of the Iowa Freedom of Information Council. -promoted by Laura Belin

We have all become acutely aware in the past few weeks why masks and face shields, respirators and ventilators are so important for hospital workers and their patients.

The supply is not keeping up with the need, and that could have dire consequences for the doctors, nurses, and patients.

Likewise, the novel coronavirus crisis has underscored the importance of another valuable commodity — access to accurate, authoritative information.

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How delaying property tax enforcement affects Iowa taxpayers, local government

Jon Muller is a semi-retired public policy analyst and sporadic blogger at jonathonmuller.com.-promoted by Laura Belin

Governor Kim Reynolds’ March 20 proclamation related to the COVID-19 pandemic suspended provisions of Iowa law imposing penalties and interest on late property tax payments.

Iowa’s 99 county governments collect property taxes and distribute the funds to themselves and other taxing authorities, such as school districts, cities, community colleges, or townships. The taxes paid by property owners are technically due on March 1 and September 1 of each year. Normally, penalties and interest begin to accrue on April 1 and October 1, respectively.

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Republican bill to protect housing discrimination part of a pattern

Matt Chapman closely follows Iowa legislative happenings. -promoted by Laura Belin

The Iowa Senate Local Government Committee has approved a bill that would prevent municipalities from banning discrimination against tenants based on their source of income.

Senate Study Bill 3178 is yet another attack by the majority party on some of the most vulnerable Iowans. Section 8 housing vouchers are for those with nowhere to go, and they only cover half of the rent on apartments or houses.

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The 19 Bleeding Heartland posts I worked hardest on in 2019

Five years ago, I started taking stock of my most labor-intensive posts near the end of each year. Not all of these are my favorite projects, though invariably, some of my favorites end up on these compilations.

Before getting to the countdown for 2019, I want to give another shout out to guest authors who poured an extraordinary amount of work into two posts Bleeding Heartland published last year.

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Iowa needs one insurance plan for all public employees

Randy Richardson argues that it’s time to revive an idea first proposed for public school districts four decades ago. -promoted by Laura Belin

When I started teaching in 1976, I received fully paid family health insurance as part of my benefits package. That coverage included a $100/$200 deductible. Although this was considered to be a “Cadillac plan,” it was not uncommon to find similar coverage at schools across Iowa. The teachers in my district felt this insurance plan was very important and, over the years, often sacrificed salary increases to keep the coverage.

Shortly after I left the district in 1996, one of my former co-workers was diagnosed with a serious illness and claims from that incident ran well into six figures. Insurance premiums skyrocketed and, in an effort to keep premiums at a reasonable level, deductibles and out-of-pocket expenses increased.

Today that district offers a high deductible insurance plan with a single deductible of $3,250 and a family deductible of $6,500. Teachers in that district who wish to have family coverage must contribute more than $1,000 per month to receive that coverage. That alone would be tragic. Even worse, the same scenario has played out in every school district in the state.

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The 19 most-viewed Bleeding Heartland posts of 2019

Chasing traffic never has been and never will be my primary goal for Bleeding Heartland. If it were, I’d publish weekly posts about puppies or Casey’s pizza instead of Iowa wildflowers.

And anyone who has worked on an online news source can vouch for me: a writer’s favorite projects are often not the ones that get the most clicks.

Still, people do ask me from time what posts tend to do well, and I find it fun at year-end to recap the pieces that were particularly popular with readers. Since I started this exercise a few years ago, I’ve always uncovered some surprises.

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Recognizing Bleeding Heartland's talented 2019 guest authors

More than 125 authors contributed to the 290 guest posts Bleeding Heartland published this calendar year–way up from the 202 pieces by about 100 writers in 2018 and the 164 posts by 83 writers the year before that. I’m immensely grateful for all the hard work that went into these articles and commentaries and have linked to them all below.

You will find scoops grounded in original research, such as John Morrissey’s exclusive reporting on Sedgwick landing a lucrative contract to administer Iowa’s worker’s compensation program for state employee, despite not submitting the high bid.

The most-viewed Bleeding Heartland post this year was Gwen Hope’s exclusive about the the Hy-Vee PAC donating $25,000 to the Iowa GOP, shortly before President Donald Trump headlined a Republican fundraiser at Hy-Vee’s event center in West Des Moines.

Several commentaries about major news events or political trends were also among the most widely read Bleeding Heartland posts of 2019. I’ve noted below pieces by Ed Fallon, Tim Nelson, Bruce Lear, Randy Richardson, J.D. Scholten, Dan Guild, State Senator Claire Celsi, and others that were especially popular. (This site has run more than 630 pieces since January 1.)

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Action: Public comments needed on Iowa's Impaired Waters List

John Norwood is a Polk County Soil and Water Commissioner. Readers can email comments to Dan Kendall at daniel.kendall@dnr.iowa.gov or mail them to the address enclosed at the end of this post. -promoted by Laura Belin

Friends, Polk County Residents, Iowans,

Below, please find public comments I filed with the Iowa Department of Natural Resources (DNR) last week on our 2018 Impaired Waters List. The public comment period closes December 28.

My most important takeaway and message to Iowans is that our impaired waters need to be addressed by first, modernizing the vision for our state’s agricultural “machine,” and second, looking at how to support that new vision through systems, conservation infrastructure, policies and practices, and local, regional, national, or international markets.

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Fighting city hall on the state level

Exclusive reporting by Marty Ryan on his efforts to hold the Iowa Board of Corrections accountable for failing to follow state law. -promoted by Laura Belin

“You can’t fight city hall,” the saying goes. It means you may get more gratification from beating your head against a wall than from fighting with government bureaucratic processes.

I have fought city hall, but I think I can count the successes on one finger. My recent challenge to secure a win for common sense was beat back last month when the Iowa Public Information Board dismissed the complaint I had filed against the Iowa Board of Corrections in July.

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Can Iowa fix flawed felon database before 2020 election?

Ten months after the Des Moines Register revealed that “Iowa’s flawed felon list has been disqualifying legitimate voters for years,” and five months after voting rights advocates warned that “Iowa’s voter list maintenance practices are arbitrary and unlawful,” Secretary of State Paul Pate announced an ambitious plan to clean up the felon database.

“The new steps to ensure the system’s accuracy include a manual review of all 90,000 files,” a November 20 news release announced. The goal is to complete the task before next year’s general election.

Several unanswered questions remain about the plan.

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Iowa's Ag department ignored repeated warnings from state auditors

The Iowa Department of Agriculture and Land Stewardship (IDALS) has not acted on advice to improve its management of financial transactions and databases “to prevent losses from employee error or dishonesty.”

For ten years running, under three different state auditors, reports have warned Iowa Secretary of Agriculture Mike Naig or his predecessor Bill Northey that the IDALS accounting system does not conform to best practices and does not ensure that some divisions are collecting and depositing fees appropriately.

IDALS leaders have responded to each report with boilerplate excuses and non-sequiturs, instead of changing internal procedures to address the concerns.

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How the Iowa Department of Corrections is addressing racial disparities

Iowa has long had one of the country’s worst racial disparities in the criminal justice system. A 2016 report by Ashley Nellis for The Sentencing Project showed the incarceration rate for African Americans in Iowa was the fourth-highest among the 50 states, with approximately one in seventeen adult black males imprisoned. Iowa ranked third-worst in the nation for racial disparity, with an incarceration rate for African Americans eleven times higher than the rate for white people.

Over the past year, the Iowa Department of Corrections has formally recognized the problem and its responsibility to provide a bias-free environment for incarcerated individuals and those in community-based corrections programs. The department has also taken several concrete steps to improve staff training and identify possible sources of racial disparities.

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Iowa campaign regulator searching for new executive director

The Iowa Ethics and Campaign Disclosure Board will soon hire a new executive director. Megan Tooker, who has held the position since December 2010, is leaving to pursue unspecified new opportunities, she told Bleeding Heartland on November 4.

The ethics board is one of the smallest state agencies and enforces Iowa law on campaign finance disclosures, government ethics and lobbying the executive branch, and gifts to public officials.

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Iowa governor names group to steer criminal justice reform efforts

Fourteen people representing a “diverse group of stakeholders” will recommend policies to reduce recidivism and racial disparities in Iowa’s criminal justice system, Governor Kim Reynolds announced on November 4.

Lieutenant Governor Adam Gregg, a former state public defender, will chair the Governor’s FOCUS Committee on Criminal Justice Reform, which will meet for the first time on November 7. FOCUS stands for “Fueling Ongoing Collaboration and Uncovering Solutions.” The other members are:

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Questions and answers: Jerry Foxhoven's wrongful termination claim

Former Iowa Department of Human Services director Jerry Foxhoven revealed more details about his wrongful termination claim on August 1. He asserts that he was fired after expressing concern about the DHS continuing to pay a large share of the salary for the governor’s deputy chief of staff, Paige Thorson.

As Bleeding Heartland reported last week, Thorson worked extensively on Medicaid-related issues for some time, but she became less involved with the DHS this spring, as Governor Kim Reynolds brought on a new health policy adviser.

Foxhoven and his attorney Tom Duff released a written statement and answered many follow-up questions during a 45-minute news conference. Radio Iowa posted the full audio. The questions and answers below are not a transcript from the conference, but rather my effort to put information about Foxhoven’s case in context for readers.

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Jerry Foxhoven to claim wrongful termination, retaliation

Jerry Foxhoven will pursue legal action claiming retaliation and wrongful termination as director of the Iowa Department of Human Services, Ryan Foley was first to report for the Associated Press on July 31. His attorney, Tom Duff, told the AP

that Foxhoven objected to a request to continue to have his agency fund most of the salary of the governor’s deputy chief of staff, Paige Thorson. Duff says that Foxhoven believed the arrangement made sense when he approved it in 2018. But he said that, by June, Foxhoven believed Thorson was no longer furthering the agency’s interests.

Duff plans to release a more detailed statement at an August 1 news conference, his office told Iowa reporters today.

As Bleeding Heartland discussed here, Thorson had handled health policy for the governor’s office since late 2017, but Governor Kim Reynolds brought Liz Matney over from the DHS this spring to be her health policy advisor.

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Leader quits Iowa civil rights enforcement agency (updated)

The Iowa Civil Rights Commission’s interim executive director stepped down last week, following an extended period of uncertainty for the agency charged with enforcing the Iowa Civil Rights Act.

Linda Grathwohl did not explain her decision in the letter she delivered to Governor Kim Reynolds on July 11. In an e-mail to the commission’s staff the same day, Grathwohl didn’t specify any reason for leaving, saying she planned to return to Iowa Legal Aid once her resignation was effective on July 25. Attempts to reach Grathwohl for further comment by phone, e-mail, and Facebook message were unsuccessful.

Nearly seven months have passed since Grathwohl’s predecessor, Kristin Johnson, left at the end of her term. Reynolds has not appointed a permanent executive director, and correspondence obtained by Bleeding Heartland through a public records request shows little sign the governor or her staff are interested in the agency’s work.

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Why was Jerry Foxhoven worried?

Jerry Foxhoven has shed more light on the disagreement that preceded his forced departure as Iowa Department of Human Services director last month. On July 24 he told David Pitt of the Associated Press “that he declined to approve paying the salary of Elizabeth Matney, who left DHS on May 17 to accept a job as Gov. Kim Reynolds’ adviser on health policy.”

Staff for Reynolds disputed Foxhoven’s account, saying he never raised concerns about covering Matney’s salary and wasn’t fired for that reason. They also noted that for many years, state agencies including DHS have occasionally paid employees working in the governor’s office.

Foxhoven’s aware of that precedent, having signed some of the relevant documents himself. So why would he question the legality of this arrangement? The former director’s comments to reporters and records obtained by Bleeding Heartland provide some clues.

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Jerry Foxhoven stopped playing along. This will end badly for Kim Reynolds

Editor’s note: Bleeding Heartland’s coverage of this story continues here and here.

Governor Kim Reynolds didn’t want the public to learn why she forced out Jerry Foxhoven as director of the Iowa Department of Human Services. The vague official narrative about Foxhoven’s unexpected departure remained intact for a month.

But the ground shifted last week. As further details emerge, the governor and her top staff will have more explaining to do.

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Sedgwick landed six-year, $7.9 million state contract with also-ran cost proposal

Des Moines freelance writer John Morrissey digs into how a well-connected company landed a lucrative state contract. Laura Belin contributed reporting to this story.

Four months after being awarded a contract to administer Iowa’s worker’s compensation program for state employees, a politically connected West Des Moines company has apparently not come to terms with the state to continue its work.

Sedgwick Claims Management Services LLC was selected in early March to keep handling the program, even though a competitor achieved a better score on three cost proposal items. The state will pay Sedgwick $7.9 million in administrative costs over six years. Runner-up bidder TRISTAR Risk Enterprise Management LLC offered to do the work for a little more than $6 million, a potential savings of nearly $1.9 million over the contract period.

The Iowa Department of Administrative Services (DAS) provided copies of all submitted bids for the current and previous bid cycles upon receiving John Morrissey’s public records request. But the department has declined further comment about the award and refused to clarify the scoring system or other matters related to this bid process. The new DAS director Jim Kurtenbach did not respond to a request for an interview about this matter.

Sedgwick’s bid contact officer referred questions to several state officials and the company’s public relations office. That office also did not respond to Bleeding Heartland’s inquiry.

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Jim Kurtenbach to lead Iowa's HR agency. What was Kim Reynolds thinking?

Governor Kim Reynolds announced last week that Jim Kurtenbach will be the new director of the Iowa Department of Administrative Services (DAS), effective July 1. Paul Trombino has held that position on an interim basis for about a month, after the Iowa Senate did not confirm previous DAS Director Janet Phipps.

Tapping Kurtenbach for this job was a strange choice. The agency has broad responsibility for human resources, procurement, and accounting on behalf of the state. Sexual harassment or discrimination by senior officials has led to several lawsuits against the state and millions of dollars in settlements in recent years. Yet not only does Kurtenbach lack relevant experience in the HR field, his hiring and managerial decisions as Iowa State University’s vice president and chief information officer were far from a model for best practices.

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Iowa Medicaid oversight chief to be governor's new health policy analyst

Elizabeth Matney, who has led the Iowa Medicaid Bureau of Managed Care since the state began privatizing nearly the whole program in 2015, is leaving the Department of Human Services to become Governor Kim Reynolds’ health policy advisor, Matney’s LinkedIn profile shows. Her starting date is unclear; the governor’s office has not announced Matney’s hiring or responded to Bleeding Heartland’s inquiries on the subject. A DHS organizational chart dated June 17 still shows Matney as bureau chief for MCO Oversight & Supports, the state’s leading official for overseeing the private companies picked to manage care for more than 600,000 Iowans on Medicaid.

When the new fiscal year begins on July 1, the governor’s office will receive additional funding for staff, so Matney’s work for Reynolds may formally begin at that time. The governor’s previous health policy advisor, Paige Thorson, appears to be staying on as deputy chief of staff, meaning that new funds would be needed to pay Matney (the governor’s staff have not clarified that point).

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Iowa DHS director Foxhoven resigns; governor appoints Gerd Clabaugh (updated)

Jerry Foxhoven has resigned as Iowa Department of Human Services director, effective today, Governor Kim Reynolds’ office announced on June 17. The news release did not give a reason for Foxhoven’s departure. Staff for DHS and the governor did not immediately respond to questions including:

  • Did Reynolds request Foxhoven’s resignation? UPDATE: Foxhoven confirmed that she did. See update below.
  • Was the resignation related to UnitedHealthcare’s impending departure from the Iowa Medicaid program on June 30?
  • Was the resignation related to DHS negotiations with Centene/Iowa Total Care, which will begin managing care for hundreds of thousands of Iowans on Medicaid as of July 1?
  • What is the status of negotiations with the state’s negotiations with Centene/Iowa Total Care regarding the Medicaid program?

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