# State Government



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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  • Planned Parenthood on track to receive sex ed grants

    Two Iowa state agencies announced on May 31 an intent to award Planned Parenthood of the Heartland sex education grants for the fiscal year beginning on July 1.

    Republican lawmakers approved and Governor Kim Reynolds signed legislation seeking to deny Planned Parenthood access to the federally-funded Community Adolescent Pregnancy Prevention and Services Program (CAPP) and the Personal Responsibility Education Program (PREP) grants. However, a Polk County District Court put that provision on hold this week, saying Planned Parenthood was “likely to succeed on the merits of its equal protection claim” under the Iowa Constitution.

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    State board suggests more restrictive medical cannabis limits

    Carl Olsen has been a leading advocate for medical cannabis in Iowa for many years and closely follows legislative happenings related to the issue. -promoted by Laura Belin

    In a highly unusual move, the Iowa Department of Public Health (IDPH) announced on the afternoon of April 12 that the Medical Cannabidiol Advisory Board had rescheduled its planned meeting. Instead of convening for two and a half hours on May 3, the board would meet for one hour on April 16.

    Members called the shorter, rushed meeting in order to discuss recommendations on the tetrahydracannabinol or THC cap and purchase limits in a bill the Iowa House approved last month.

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    An army of misery forced to decamp with UnitedHealthcare's departure

    John Morrissey is a longtime Des Moines resident who has investigated state spending increases, financial anomalies, and payment disruptions associated with Medicaid privatization in Iowa. -promoted by Laura Belin

    The “he said/she said” controversy between an insurance company CEO and Iowa’s governor about why UnitedHealthcare decided to leave the state’s Medicaid program might make entertaining copy, but it doesn’t address who is going to manage the care of 420,000 Iowans left in the lurch.

    Nor does it address whether the remaining company (Amerigroup) is adequately prepared to handle more members, and whether a new player poised to enter our state’s Medicaid market (Iowa Total Care) has the expertise to handle special populations in Iowa such as the elderly, disabled, and very ill.

    It also doesn’t consider whether the state’s traditional fee-for-service Medicaid offering has the financial wherewithal to shoulder an even larger share of the enrollment and cost. Fee-for-service was held over from the old state-run program when most of the Medicaid program was privatized in 2016. The fee-for-service program pays the claims of Iowa’s sickest and most frail Medicaid members, which the for-profit managed care organizations (MCOs) don’t want or can’t handle.

    The Iowa Deparment of Human Services (DHS) did not respond to a request for comment on these issues.

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    Laughable spin casts Reynolds as hero of latest Medicaid fiasco

    When a government press release arrives at 4:45 pm on a Friday, you know it’s not bearing good news. UnitedHealthcare will soon pull out of Iowa’s Medicaid program, the governor’s office announced on March 29. The company “manages health care for more than two-thirds of Iowans on Medicaid,” at least 425,000 people, Tony Leys reported for the Des Moines Register.

    The official spin portrayed Governor Kim Reynolds as a hero who resisted a for-profit insurer’s “unreasonable” and “unacceptable” demands.

    The real story is that nearly three years into our costly Medicaid privatization experiment, Iowa’s dominant managed-care organization (MCO) still can’t handle normal business practices like paying health care providers on time.

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    Political bandwidth

    Paul Deaton: “It’s easy to say we should balance our politics and policy. I’m not sure about that. A better approach is to recognize there is political bandwidth and tune in.” -promoted by Laura Belin

    The 2020 general election will be challenging for a lot of reasons, not the least of which for me is deciding whether policy or politics is the most important part of it.

    Politics is the art of what’s possible. I’m over the naive notion that policy matters more than politics, although the art of what’s possible has produced some problems.

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    Bill targeting Iowans on public assistance would cost $40 million by 2021

    Matt Chapman has closely followed this year’s legislative proposals targeting Iowans on public assistance. -promoted by Laura Belin

    A bill requiring more frequent reviews of Iowans’ eligibility for public assistance programs would cost the state an additional $40 million during the first two years alone, according to analysis by the nonpartisan Legislative Services Agency. The federal government would be on the hook for an additional $35 million during the same period.

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    Dark money lobbying Iowa legislature on solar bill

    A new dark money group is threatening clean energy progress in Iowa. Mark Langgin digs into the social media advertising campaign that emerged a few days ago. -promoted by Laura Belin

    Looks like the utilities and electric cooperatives are up to no good. A new “dark money” organization just launched ads on Facebook.

    The “REAL” Coalition began advertising on Facebook on March 1, arguing for legislation that would undermine net metering. The REAL Coalition is doing this under the guise of promoting renewable and clean energy.

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    What's going on at the Iowa Department of Revenue?

    Governor Kim Reynolds appointed former Iowa House Speaker Kraig Paulsen as director of the Iowa Department of Revenue on February 22, only six weeks after she had named Adam Humes to lead the agency. A late Friday afternoon news release did not explain the reason for the change, saying only that Humes “has decided to pursue other opportunities.”* Paulsen will start work this coming Monday. Leadership transitions at state agencies typically are weeks or months in the making.

    Humes’ predecessor, Courtney Kay-Decker, also left under odd circumstances. Appointed by Governor Terry Branstad in 2011, she sounded excited to continue to lead the department after the 2018 election. But in early December, Kay-Decker announced her resignation, effective at the start of the new year.

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    Catherine Williams: Breaking barriers and glass ceilings 50 years ago

    Catherine Gayle Williams passed away on May 20, 2020. Original post follows.

    Democratic State Representative Marti Anderson delivered these remarks in the Iowa House on February 4. -promoted by Laura Belin

    The Iowa House of Representatives on February 4, 2019 begins to observe Black History Month. The ancestors of African Americans did not immigrate to the United States of their own free will like most of our families. They were trafficked to America to work the fields, build our communities and help create our nation’s history.

    Beginning today and for the next month, you will hear inspirational stories of Black Americans and you will be moved by their lives of hard work and persistence to make America a better place for their children.

    I am thrilled to open this special month of American history by honoring the Iowa grit and American spirit of my friend and shero, Catherine Gayle Williams of Des Moines. Ms. Williams has had two primary careers in her 104 rich years of life, and I would like to weave her story of accomplishment for you.

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    Payout for sexual harassment leaves oversight failures unexplored

    A divided state board has approved settlements worth a combined $4.15 million to two women who reported extensive, appalling sexual misconduct by former Iowa Finance Authority Director Dave Jamison. Under the agreements posted in full below, $2.35 million will go to the agency’s former business development director Beth Mahaffey, and $1.8 million will go to the agency’s communications director Ashley Jared. Attorney’s fees for both women will come out of those payments.

    The settlements bring closure to women who endured a horrific workplace environment. But they also ensure that oversight failures at the finance authority will never be fully explored in litigation.

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    The case for a Democratic message of fiscal sustainability

    Clive native T.J. Foley is a Harvard College undergraduate. -promoted by Laura Belin

    As shutdowns abound and federal workers around the country continue to celebrate the holidays without their paychecks, the fiscal practices of our state and federal government continue to destabilize economic outlook. Day after day, elected officials in Washington bicker about spending cuts and public expenditures with no end in sight, all from the supposed guardians of fiscal responsibility.

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    Key GOP lawmaker not interested in limiting state auditor's subpoena power

    Republicans in Wisconsin and Michigan responded to recent election losses by limiting the powers of some Democratic statewide officials. GOP lawmakers are rumored to be considering similar legislation in Iowa, where Rob Sand just took office as the first Democrat to serve as state auditor in more than 50 years.

    But Republican State Representative Bobby Kaufmann, who chairs the Iowa House State Government Committee, told Bleeding Heartland he has no interest in revoking or curtailing the subpoena power of Sand’s office.

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    Racism evident in Iowa justice system

    Iowa has long been one of the worst states for racial disparities in the criminal justice system. Gwen Hope reviews some depressing relevant data. -promoted by desmoinesdem

    If you’ve been convicted of falling short of the law in Iowa, it pays to be white. This is nothing new, racial bias nationwide has long been a known and understood problem rooted in the prejudices of the past and present. How much bias, however, might surprise some people.

    This is nearly 2019, after all, many white Americans live as if racism is a thing of the past no longer dealt with in their illusory post-racial modern world. In 2018, the evidence here in Iowa shows the continuation of one of the longest, most abhorrent trends in US history – white privilege, black punishment.

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    Iowa DHS withheld records on "fishy" Medicaid deal before election

    For weeks this fall, the Iowa Department of Human Services stonewalled a journalist’s request for easily accessible public records that would have cast an unflattering light on management of the state’s Medicaid program.

    Three days after Governor Kim Reynolds won the election, the department sent a copy of one key document to Ryan Foley of the Associated Press. DHS released other relevant files on December 6, allowing Foley to confirm Director Jerry Foxhoven had cut a deal in April allowing UnityPoint Health affiliates to keep nearly $2.4 million they had been overpaid for services provided to Medicaid patients.

    The settlement agreement came shortly after UnityPoint agreed to remain part of the network for Amerigroup, one of the private companies DHS picked to manage care for Medicaid recipients.

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    Half-baked state audit doesn't settle questions about Medicaid savings

    Privatizing Medicaid saved the state of Iowa about $126 million during the fiscal year that ended June 30, according to a report State Auditor Mary Mosiman released on November 26.

    I put low odds on that estimate holding up after a more diligent auditor takes office.

    Even if it did, this review of “savings” was too narrow to reveal whether turning Medicaid over to for-profit companies was a good deal for Iowans.

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    Why Jerry Foxhoven is wrong about closing Iowa's mental health institutions

    Leslie Carpenter is an advocate for improving the treatment of people with serious mental illnesses in Iowa and across the country. -promoted by desmoinesdem

    While speaking at the National Alliance on Mental Illness Iowa Annual Conference on November 16, Iowa Department of Human Services Director Jerry Foxhoven advised the attendees that it was a good thing that two of the state’s four in-patient mental health institutions (MHIs) were closed, and that we have moved to community-based care. He further shared that it was a good thing to go from more than 700 beds to the current level of 64 beds for adults in the whole state.

    We should recall that this reduction of state-operated acute care beds has caused Iowa to be ranked 51st by the Treatment Advocacy Center.

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    Former Iowa Medicaid carrier's financial sleight of hand

    John Morrissey investigates anomalies in financial reports filed by AmeriHealth Caritas, which left Iowa’s Medicaid program last year. -promoted by desmoinesdem

    A managed care company that left the Iowa Medicaid program last November financially engineered its first quarter report to state regulators this year, even as it dragged its feet in paying Iowa medical providers for claims that were then more than 90 days old.

    AmeriHealth Caritas Iowa, Inc. claimed in its calendar first quarter filing with the Iowa Insurance Division (IID) that general administrative costs to run its Iowa operation totaled $20 million. But at the end of June, the company reduced that expense to $6 million without explanation.

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    State board rejects religious claim for cannabidiol

    Carl Olsen is a longtime advocate for expanding access to medical cannabis in Iowa and maintains the Iowans for Medical Marijuana website. -promoted by desmoinesdem

    On Thursday, September 20, the Iowa Board of Pharmacy moved to dismiss my petition for the religious use of medical cannabidiol, in Olsen v. Board of Pharmacy, No. CVCV056841 (Iowa District Court, Polk County).  The Board says the petition should have been filed with the Iowa legislature instead of the board.

    The problem with the board’s position is that the legislature has given the board the duty of recommending changes in the schedules of controlled substances and medical cannabidiol is a controlled substance in Iowa.  There is also an existing exemption for the religious use of peyote, a Schedule 1 controlled substance.  Iowa Code § 124.204(8) (2018).

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    Former Iowa Medicaid carrier owes millions in unpaid claims

    John Morrissey delved into a little-noticed financial report by AmeriHealth Caritas. -promoted by desmoinesdem

    Although it left the Iowa Medicaid program more than seven months ago, AmeriHealth Caritas Iowa, Inc. continues to string along claims payments due to Iowa providers.

    AmeriHealth – which is owned by Independence Blue Cross of Philadelphia – reported $14.6 million in unpaid liability for claims submitted last year by Iowa Medicaid providers, according to the company’s most recent quarterly financial filing with the Iowa Insurance Division. Meanwhile, the managed-care organization has racked up more than $6 million in administrative costs so far this year to manage the now-closed operation.

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    Medical cannabis board recommends adding ulcerative colitis

    Carl Olsen is a longtime advocate for expanding access to medical cannabis in Iowa and maintains the Iowans for Medical Marijuana website. -promoted by desmoinesdem

    I attended the seventh meeting of the state Medical Cannabidiol Advisory Board on August 3 at the Iowa Laboratory Facility on DMACC’s Ankeny Campus. Current law names nine “debilitating medical conditions” which can legally be treated with cannabidiol. See Iowa Code § 124E.2(2) (2018). The board considered three petitions to expand the list. Board members denied one, deferred one, and granted the petition to add ulcerative colitis.

    My observations about these rulings may help advocates lobbying officials to allow medical cannabis for other diseases or chronic health conditions now excluded under Iowa law.

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    Iowa court strikes down state ban on Medicaid coverage for transgender care

    A two-decade-old state administrative rule “clearly discriminates against transgender Medicaid recipients on the basis of gender identity by excluding coverage for medically necessary gender affirming surgery” while covering the same surgeries for non-transgender Iowans, a Polk County District Court ruled on June 7. Chief Judge Arthur Gamble found the rule violates both Article I, section 6 of the Iowa Constitution, which guarantees equal protection, and the Iowa Civil Rights Act, which has prohibited discrimination on the basis of gender identity since 2007.

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    Don’t hide government officials from the public

    Iowa Freedom of Information Council executive director Randy Evans reflects on the flawed draft advisory opinion the Iowa Public Information Board’s staff proposed in response to my inquiry. -promoted by desmoinesdem

    I sometimes think government officials overlook the important role the public plays in our system of government.

    That was my takeaway last week from the monthly meeting of the Iowa Public Information Board.

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    Foreign lobbying will be off-limits for Iowa officials, employees

    Continuing a series on Iowa legislative happenings that attracted little notice while the House and Senate were in session.

    State officials will be barred from “any outside employment or activity that requires the person to register under the federal Foreign Agents Registration Act,” under a new law that takes effect on July 1. In addition, applicants for state jobs or nominees for any position that requires Iowa Senate confirmation will have to disclose whether they have ever registered as foreign agents.

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    Iowa legislative recap: Constitutional amendments

    Iowa lawmakers went home for the year on May 5. In the coming weeks, Bleeding Heartland will catch up on some of the legislature’s significant work that attracted relatively little attention.

    Two proposed state constitutional amendments passed both chambers and could appear on the 2020 general election ballot, if the House and Senate approve them in the same form during either 2019 or 2020.

    Three other constitutional amendments cleared one chamber in 2017–in one case unanimously–then stalled in the other chamber as lawmakers completed this two-year session. Those ideas may resurface next year. But since changes to the state constitution must be passed by two consecutively elected legislatures before landing on the general election ballot (the last step in the process), Iowa voters would not be able to ratify those proposals until November 2022 at the earliest.

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    New family planning program fails Iowans. Republicans don't want to know

    Republican lawmakers made big promises last year that Iowans would have “more access” to family planning services under a new state program that excluded Planned Parenthood.

    As anyone could have foreseen, the opposite was true. In the first nine months of the State Family Planning Program’s existence, the number of Iowans enrolled dropped by a third. The number who obtained at least one reproductive health care service fell by more than 40 percent from the first quarter to the second quarter the program was operating. The number of health care providers billing the program also declined by 40 percent during the same time frame.

    Republican lawmakers don’t want to hear how poorly the new system is serving their constituents. Even worse, GOP state senators voted unanimously last week to compound the mistake by blocking Planned Parenthood from participating in sex education programs.

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    Pretext for secrecy on Jamison firing isn't fooling anyone (updated)

    UPDATE: On April 26 the governor’s office released a redacted version of the written complaint against Jamison, now enclosed at the end of this post.

    Governor Kim Reynolds and her staff continue to withhold details on the “credible allegations” of sexual harassment that ended Dave Jamison’s tenure as director of the Iowa Finance Authority last month.

    To hear her tell the story, the stonewalling is all about protecting Jamison’s victims. But Reynolds could provide more details–and comply with state law–without revealing the accusers’ identities.

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