In Brief: Iowa ACA Expansion Proceeds; University Hospitals, EMH Explore Affliation

Iowa Signs ACA Expansion Into Law

Iowa Gov. Terry Branstad has signed into law a plan that will provide health insurance coverage to about 150,000 Iowans under the Affordable Care Act.

The plan passed by Iowa lawmakers and Branstad made law late last week is a hybrid solution. Medicaid coverage will be expanded to cover Iowans earning up to 100% of the federal poverty level. Iowans earning up to 138% of the federal poverty level will be able to obtain commercial through the health insurance exchange, with the state government fully subsidizing their coverage.

Under the ACA, individuals earning up to 138% of the poverty level would be eligible for Medicaid coverage, with the federal government paying 100% of the additional cost for the first three years of its implementation, and 90% after that. However, Iowa's Republican-controlled Legislature balked at that plan. The compromise plan was considered the only way to get the Republican-controlled Legislature to expand healthcare coverage under the ACA.

Hospitals also agreed to subsidize up to 5% of Medicaid coverage should payments from the federal government for Medicaid ever dipped below 90%.

The Centers for Medicare and Medicaid Services has to approve Iowa's plan and grant a waiver before it can move forward.

University Hospitals, EMH Explore Affiliation

The University Hospitals and EMH Healthcare systems, which both operate inpatient facilities in the Cleveland area, have signed a letter of intent to explore an integration.

Under the integration that may be pursued, EMH would be added to the University Hospitals system. University Hospitals operates 10 hospitals in Cleveland and the nearby suburbs, along with 20 outpatient facilities. EMH operates four inpatient facilities.

“At the forefront of this discussion is how to best serve the health care needs of our communities,” said Donald Sheldon, M.D., EMH's chief executive officer. “Our focus will be on the benefits that patients will see through this agreement and the efficiencies we can realize that will keep quality healthcare affordable for our residents and businesses.”

Financial terms of any possible integration were not disclosed, but it was noted that University Hospitals would provide some capital to EMH.

Should the two parties reach a merger agreement, it would likely be finalized before the end of 2013, officials said.

Michigan Blues Offer Low-Cost Plan

Blue Cross Blue Shield of Michigan is offering low-priced health insurance plans to individuals in three counties in the west-central portion of the state.

The plans are available to residents of Kent, Muskegon and Oceana Counties, with care provided by the Mercy Health system. The plan will be offered both through Michigan's health insurance exchange when it begins operations on Oct. 1, and through commercial brokers.

"Healthcare reform is driving significant changes in the marketplace, and the price of insurance products has become paramount to consumers," said Jeff Connolly, president of the Michigan Blues's West Michigan operations. "Many people will be looking to trade broad network access for a quality local network and a lower-cost insurance premium.”