Capitol Letters: House passes Iowa Rural Development Tax Credit Program

Last week, the House released the House Health and Human Services Budget. This budget appropriates $2.217 billion of state general fund to the Department of Veterans Affairs and the Department of Health and Human Services for Fiscal Year 2025. This represents a $92.5 million increase in general fund compared to Fiscal Year 2024. With federal matching funds included, this budget appropriates over $6 billion towards Medicaid, child care, child welfare, public health, aging and veteran services in Iowa.

1. Care for Disabled Iowans

• This budget increases home and community-based services rates to care for disabled Iowans in their communities with a $14.6 million investment from the general fund. With additional general fund to backfill ARPA dollars, this budget in total increases disabled care with over $84 million.
• This budget provides $5 million of state general fund to increase access to enhanced case management for Iowans using long-term services and supports.
• This budget provides $1.78 million to increase the eligibility for the Medicaid for Employed people with disabilities program.

2. Mental Health

• This budget provides $2.25 million in increased state funding towards mental health Medicaid rates. This builds on the work from last year when the legislature passed a $13 million increase.
• Provides an increase to community mental health centers and psychologists based on the 2023 and 2024 Medicaid rate reviews.
• Provides for an enhanced rate to PMICs that provide care to the most complex children in our state.
• Provides funding and employees to specialize the Independence Mental Health Institute to behaviorally complex youth and the Cherokee MHI to acute and forensic adults.
• $3 million for 988 hotline.

3. Older Iowans — This budget provides a $3 million increase to home health rates. We want to do everything we can to keep Iowans in their homes for longer and to ensure access to rural Iowa.

4. Pharmacies — The House has prioritized assisting Iowa’s independent pharmacies against Pharmacy Benefits Managers (HF2401) and passed the Pharmacy Practice Act (House File 555). This budget builds on that work by increasing the Medicaid pharmacy dispensing fee by $2 million.

5. Provider Rates — DHHS has provided the legislature with measurable rates in need that are either below Medicare or surrounding states rates. This budget provides rate increases based on that methodology to PTs, medical supplies, OTs, PAs, and nurse midwives.

6. Child Welfare

• Decreases the ratio of supervisors to social workers out in the field
• Increases the stipend for those in the child welfare system utilizing the preparation for adult living program
• Increases foster care rates and adoption subsidy rates
• Pays for home studies for those Iowans that are hoping to adopt a child in need
• Funds House File 2134 to expand subsidized apartment living
• Funds Eldora State Training School at the level recommended by the governor

7. Veterans — This budget funds the Iowa Department of Veterans Affairs, the Veterans Cemetery, and the Iowa Veterans Home at the Governor’s recommended level. Iowa’s veterans deserve all the support possible for their service to this country, and this budget ensures they have access to benefits through the department and can be put to rest with honor and dignity.