Iowa Governor Kim Reynolds signed a law expanding Medicaid coverage for low-income mothers to a full year starting in 2025, but cutting coverage for 1,700 women and babies who previously received two months of coverage.
Iowa Expands Medicaid Coverage to Low-Income Mothers
Iowa has taken a major step towards supporting new mothers and their families. Governor Kim Reynolds signed a law extending Medicaid coverage to low-income mothers who give birth in the state, providing them with a full year of coverage starting in 2025. This move is a significant improvement from the current 60-day coverage period, which is the minimum required by federal law, according to the report of Des Moines Register.
However, this expansion comes with some caveats. The law sets a new income threshold for postpartum Medicaid coverage which means that other women and babies who currently qualify for two months of coverage will no longer be eligible. Estimates around 1,700 women and babies will lose coverage each month as a result.
The new income threshold for Medicaid eligibility is set at 215% of the federal poverty level, approximately $64,500 annually for a family of four, down from the current threshold of 375% or $117,000 annually.
Impact on 1,700 Women and Babies – Medicaid Coverage
Despite these changes, the expansion of Medicaid coverage is still a significant step forward for Iowa. The law will allow 2,700 women who would have otherwise lost coverage after 60 days to remain on Medicaid for a full year. Additionally, another 2,300 women will be able to remain on Medicaid after the first two months, rather than qualifying for insurance through the Iowa Health and Wellness Program.
The cost of this expansion is estimated to be around $1.1 million next year and $3.3 million the following year, before dropping to $286,000 per year. While some critics argue that the law should have been paid for without cutting coverage for other Iowans, supporters see it as a positive step towards supporting new mothers and their families.