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Pending Medicaid cuts close Iowa health clinic

Nearly 670,000 people in Iowa receive Medicaid benefits, about 20% of the state's population, according to KFF Health News.
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Nearly 670,000 people in Iowa receive Medicaid benefits, about 20% of the state's population, according to KFF Health News.

MercyOne is set to close its southside Des Moines clinic next month, citing staffing shortages, rising costs and pending cuts to Medicaid reimbursement funds.

Health care advocates say social service reductions will leave thousands of Iowans without access to the only health insurance they have.

Iowa ACEs 360 Advocacy Network Director Mary Nelle Trefz said Medicaid is one of the largest sources of health insurance in the country, and service cuts and clinic closures will affect a lot of Iowans.

"About 1-in-5 Iowans have coverage through Medicaid," said Trefz. "When we're talking about kids, closer to 40% of kids in Iowa have coverage through Medicaid, 100% of foster care kids, and about 50% of kids with special healthcare needs."

In a press release, MercyOne says it's transitioning services to other clinics in the metro Des Moines area.

Trefz said the cuts are bound to have a profound ripple effect on the Iowa workforce, and this hospital closure is just the beginning.

"When a hospital or a clinic closes," said Trefz, "not only does that mean a loss of healthcare access for that community, it also can mean more folks are out of a job or having to travel farther for a job, and that puts a strain on the community even outside of the healthcare sector."

She addd that the 2025 budget bill that prompted the Medicaid cuts has left every state, not just Iowa, struggling to figure out how to fill financial gaps.