Iowa, federal government reach agreement on health insurance expansion

By Kay Henderson DES MOINES, Iowa (Reuters) – Iowa has reached a tentative agreement with federal officials on a plan to expand the number of low-income state residents eligible for Medicaid under President Barack Obama's healthcare reform law, Iowa's governor said on Thursday. The two sides have been negotiating for months over the details of the "Iowa Health and Wellness Plan," which will eventually offer coverage to more than 150,000 residents. "This is an Iowa plan that fits the health needs of our state," Republican Governor Terry Branstad said in a statement.