Reynolds signs law extending Medicaid coverage for new moms, while cutting off hundreds

Low-income mothers who give birth in Iowa will have access to a full year of Medicaid coverage beginning in 2025 after Gov. Kim Reynolds signed a law Wednesday extending their coverage.

But the stricter income thresholds in the law mean that other women and babies who currently qualify for two months of postpartum Medicaid coverage will no longer be eligible after the changes take effect.

Reynolds, a Republican, signed Senate File 2251 into law Wednesday morning, she announced in a news release.

She proposed the changes to postpartum Medicaid eligibility as part of her legislative agenda in her Condition of the State address in January.

"Being pro-life means supporting mothers and strong families," Reynolds said in a statement. "By extending postpartum Medicare coverage for thousands of new moms, we will set new families on a path to prosperity and opportunity. Thank you to the Legislature for passing this pro-family bill with bipartisan support."

Iowa currently offers new mothers 60 days of Medicaid coverage after giving birth — the minimum length of time under federal law.

With Reynolds' signature, Iowa becomes one of the final states in the country to provide 12 months of Medicaid coverage to new mothers.

What will Iowa's new income threshold be for postpartum Medicaid coverage?

The law will reduce the number of women and babies eligible for Medicaid coverage beginning next January. That will cause an estimated 1,700 women and babies to lose coverage each month, according to the nonpartisan Legislative Services Agency.

Currently, new mothers are eligible for coverage in Iowa up to a maximum family income of 375% of the federal poverty level — about $117,000 for a family of four.

The law lowers that income ceiling for postpartum coverage to 215% of the federal poverty level, about $64,5000 annually for a family of four.

Extending Medicaid coverage will allow 2,700 women who would have otherwise lost coverage after 60 days to remain on Medicaid for a full year. 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 changes are expected to cost Iowa an extra $1.1 million next year and $3.3 million the following year before dropping to $286,000 per year.

Democrats supported extending postpartum Medicaid coverage to new mothers for a full year, but opposed Reynolds' plan to pay for the extension by lowering the income threshold and cutting coverage off for other Iowans.

“While this long overdue step is worth celebrating we must acknowledge the unnecessary loss in coverage to 1,300 moms and 400 babies each month," Mazie Stilwell, director of public affairs for Planned Parenthood Advocates of Iowa said in a statement. "If Governor Reynolds and legislative Republicans actually cared about the health of Iowa moms and babies, they would have used our enormous budget surplus to continue coverage without changing income requirements."

Stephen Gruber-Miller covers the Iowa Statehouse and politics for the Register. He can be reached by email at sgrubermil@registermedia.com or by phone at 515-284-8169. Follow him on Twitter at @sgrubermiller.

This article originally appeared on Des Moines Register: Reynolds signs Medicaid extension for moms, lowers income threshold