Iowa pulls request to opt out of Obamacare requirements

Iowa pulls request to opt out of Obamacare requirements

By Susan Cornwell

(Reuters) – Iowa on Monday withdrew a request to waive some Obamacare rules to help shore up its struggling healthcare insurance market, marking a setback in efforts by Republican-governed states to sidestep requirements of the Obama-era law.

With open enrollment for the Affordable Care Act – better known as Obamacare – set to start in just over a week, the state announced it would no longer wait to hear if federal officials would approve its request aimed at cutting individual healthcare insurance premiums and widening coverage.

The withdrawal prompted a leading U.S. Senate Republican to urge Congress to approve a bipartisan fix to Obamacare, which President Donald Trump has vowed to scrap.

Iowa was viewed as a test case by some for other states that submitted similar, if far less-reaching, waivers and of how the Trump administration would respond to such requests.

Iowa Governor Kim Reynolds said the law had not been flexible enough to accommodate the state’s request.

“Ultimately, Obamacare is an inflexible law that Congress must repeal and replace,” the governor said in a statement, adding that premiums under Obamacare had increased by 110 percent for Iowans since 2013.

Iowa sought the waiver after its individual healthcare marketplace shrank to only one insurer for next year, Minnesota-based Medica.

Some of the state’s requests were similar to provisions included in Republican repeal and replace bills this year. For instance, the waiver sought to replace Obamacare’s income-based tax credits with flat age-based credits and eliminate insurer payments that Trump cut off earlier this month.

Senator Lamar Alexander, Republican of Tennessee, said the move by Iowa demonstrated the need for repairs to Obamacare that he and Democratic Senator Patty Murray have proposed aimed at stabilizing insurance markets. It would also provide states more flexibility in reshaping some parts of Obamacare.

Trump has sent mixed signals over whether he would support the bipartisan fix. Senate Majority Leader Mitch McConnell said on Sunday that he was willing to bring up the proposal for a vote but needed to know where Trump stood.

Alexander said the bipartisan repair proposal would allow the federal government to approve Iowa’s waiver.

Alexander told reporters that the Congressional Budget Office, a nonpartisan scorekeeper, would soon announce its analysis of the bipartisan repair legislation, possibly on Tuesday.

(Reporting by Susan Cornwell,; additional reporting by Yasmeen Abutaleb and Amanda Becker in Washington; Editing by Andrew Hay)

Planned Parenthood to close four Iowa clinics after cuts

FILE PHOTO - Iowa Governor Terry Branstad arrives to testify before a Senate Foreign Relations Committee confirmation hearing on his nomination to be U.S. ambassador to China at Capitol Hill in Washington D.C., U.S. on May 2, 2017. REUTERS/Carlos Barria/File Photo

By Chris Kenning

(Reuters) – Planned Parenthood said on Thursday it would shutter four of its 12 clinics in Iowa as a result of a measure backed by Republican Governor Terry Branstad that blocks public money for family planning services to abortion providers.

Health centers in Burlington, Keokuk and Sioux City will close on June 30 and one in Quad Cities soon after as a result of losing $2 million in funds under the new measure, said Susan Allen, a spokeswoman for Planned Parenthood of the Heartland. The four clinics served 14,676 patients in the last three years, she said, including many rural and poor women.

“It will be devastating,” Allen said.

The closures marked the latest fallout from a continuing push by Republicans, including President Donald Trump, to yank funding from Planned Parenthood. Many have long opposed the organization, some on religious grounds, because its healthcare services include abortions, although it receives no federal funding for abortions, as stipulated by federal law.

The Republican-controlled U.S. House of Representatives included such a defunding measure as part of the American Health Care Act, the bill aimed at replacing Obamacare.

Iowa’s Republican-led legislature agreed in its recent budget to discontinue a federal Medicaid family planning program and replace it with a state program that bars funding to organizations that provide abortions or maintain facilities where abortions are carried out. The move cost the state about $3 million.

Texas in 2011 made a similar move that has reduced funding. A state report in 2015 found that nearly 30,000 fewer women received birth control, cancer screenings and other care as a result.

A coalition of 35 Iowa groups that oppose abortion have previously argued that funding for family planning indirectly subsidizes abortions.

“The pro-life movement is making tremendous strides in changing the hearts and minds, to return to a culture that once again respects human life,” said Ben Hammes, a spokesman for Branstad, who said there were 2,400 doctors, nurses and clinics around the state for family planning that do not provide abortions.

Planned Parenthood of the Heartland said it will continue to operate eight clinics in Iowa. They provide services including cancer screenings, birth control, STD testing and annual checkups.

The group said in a tweet on Thursday that politicians driven more by personal beliefs than facts were hurting access to women’s health care.

“The devastation in Iowa is a sign of what could be next for the rest of the nation,” Danielle Wells, an official at Planned Parenthood Federation of America, said in an email.

(Reporting by Chris Kenning; Editing by Jonathan Oatis)

Iowa Supreme Court blocks portion of 20-week abortion ban

Iowa Governor Terry Branstad testifies before a Senate Foreign Relations Committee confirmation hearing on his nomination to be U.S. ambassador to China at Capitol Hill in Washington D.C., U.S. on May 2, 2017. REUTERS/Carlos Barria/File Photo

By Timothy Mclaughlin

(Reuters) – The Iowa Supreme Court on Friday granted an emergency temporary injunction halting a portion of a 20-week abortion ban that was signed into law by Republican Governor Terry Branstad just hours earlier.

The law, passed by Iowa’s Republican-controlled House and Senate last month, bans abortions once a pregnancy reaches 20 weeks and stipulates a three-day waiting period before women can undergo any abortion.

The law does not make exceptions for instances of rape or incest but does allow for abortions if the mother’s life or health is at risk.

The American Civil Liberties Union (ACLU) and Planned Parenthood, a group that provides family planning services, including abortions, challenged the waiting-period part of the legislation in court as well as the requirement for an additional clinical visit women must make before an abortion.

The state Supreme Court on Friday issued the injunction after it was denied Thursday by a district judge.

“We are pleased that the court granted the temporary injunction, ruling on the side of Iowa women who need access to, and have a constitutional right, to safe, legal abortion,” Suzanna de Baca, chief executive of Planned Parenthood of the Heartland said in a statement.

The state will have an opportunity to respond to the court’s decision on Monday.

“This is all part of the process and we’re confident that the stay will be lifted very shortly,” said Ben Hammes, a spokesman for the Republican governor.

Women in the United States have the right under the Constitution to end a pregnancy, but abortion opponents have pushed for tougher regulations, particularly in conservative states.

There are 24 states that impose prohibitions on abortions after a certain number of weeks, according to the Guttmacher Institute, which tracks reproductive policy.

Seventeen of these states ban abortion at about 20 weeks and after.

Iowa’s law, Hammes said after the signing, marked a “return to a culture that once again respects human life.”

In Tennessee, a bill similar to the Iowa measure was sent to the desk of that state’s Republican governor on Wednesday to possibly be signed into law.

(Reporting by Timothy Mclaughlin in Chicago; Editing by Jonathan Oatis)

Tennessee, Iowa close to banning abortions after 20 weeks

ultrasound machine

By Tim Ghianni

NASHVILLE, Tenn (Reuters) – Two U.S. states drew closer on Wednesday to legislating tougher restrictions on abortion with both Iowa and Tennessee seeking governors’ signatures that would ban the procedure after 20 weeks.

Women in the United States have the right under the Constitution to end a pregnancy, but abortion opponents have pushed for tougher regulations, particularly in conservative states.

A Tennessee bill banning abortions after 20 weeks was sent to the desk of Governor Bill Haslam after it was passed by the state’s Republican-controlled House on Wednesday.

Haslam, a Republican, has not made a decision on whether he will sign the measure into law and will discuss the bill with the state’s attorney general, his spokeswoman Jennifer Donnals said.

Attorney General Herbert Slatery could not be reached for comment.

Iowa Governor Terry Branstad, also a Republican, said he would sign on Friday a 20-week abortion ban. The bill was passed by the Republican-controlled House and Senate last month.

There are 24 states that impose prohibitions on abortions after a certain number of weeks, according to the Guttmacher Institute, which tracks reproductive policy.

Seventeen of these states ban abortion at about 20 weeks.

The Tennessee bill would require women to undergo a test of viability and gestational age before a doctor performed an abortion. Doctors who violate the law could face felony charges. The bill does not make exceptions for rape or incest. It does allow for abortions if the mother’s life or health is at risk.

“We’ve made significant progress as a legislative body in recent years to give a voice to the unborn,” Republican representative Matthew Hill said in a statement.

Iowa’s bill bans abortions once a pregnancy reaches 20 weeks and stipulates a three-day waiting period before a woman can undergo any abortion. It does not make exceptions for instances of rape or incest. It does allow for abortions if the mother’s life or health is at risk.

The American Civil Liberties Union and Planned Parenthood, a group that provides family planning services, including abortions, filed a lawsuit challenging Iowa’s waiting period.

“The governor, lieutenant governor and Iowa legislators have waged an outright war on women’s access to safe and legal abortions,” said Suzanna de Baca, president and chief executive of Planned Parenthood of the Heartland.

(Additional reporting and writing by Timothy Mclaughlin in Chicago; editing by Grant McCool)

Insight: Ballooning bills – More U.S. hospitals pushing patients to pay before care

FILE PHOTO: An emergency sign points to the entrance to Scripps Memorial Hospital in La Jolla, California, U.S. March 23, 2017. REUTERS/Mike Blake/File Photo

By Jilian Mincer

(Reuters) – Last year, the Henry County Health Center in Iowa started providing patients with a cost estimate along with pre-surgery medical advice.

The 25-bed rural hospital in the southwest corner of the state implemented the protocol because of mounting unpaid bills from insured patients, a group that had previously not raised red flags.

Henry County is one of hundreds of U.S. hospitals trying to cope with an unexpected consequence of the Affordable Care Act of 2010, known as Obamacare: millions more Americans have health insurance, but it requires them to spend thousands of dollars before their insurer kicks in a dime.

Since U.S. hospitals do not want to end up footing the bill, they are now experimenting with pre-payment strategies for patients, with a growing number requiring payment before scheduled care and offering no interest loans, according to interviews with more than two dozen hospitals, doctors, patients, lenders and healthcare experts.

“Most patients are appreciative that we’re telling them up front,” said David Muhs, chief financial officer for the Henry County hospital, which provides a discount for early payment. The discussion leads some patients to skip care, others to delay it or use a no interest loans available through the hospital, he said.

The ACA extended insurance to 20 million Americans, which initially helped hospitals begin to shrink debt from uninsured patients who could not pay their medical bills. But more and more, people in Obamacare plans or in employer-based health plans are choosing insurance that features low monthly payments. The trade-off is high out of pocket costs when they need care. (For a graphic, click http://tmsnrt.rs/2oCzePS)

If President Donald Trump dismantles Obamacare as promised, these plans won’t disappear. Republicans also believe high-deductible plans curb spending, and Americans faced with medical costs that rise faster than inflation and wages will look for premiums they can afford.

The trend is expected to accelerate this year because unpaid bills are creating massive bad debt for even the most prestigious medical centers. U.S. hospitals had nearly $36 billion in uncompensated care costs in 2015, according to the industry’s largest trade group, a figure that is largely made up of unpaid patient bills.

The largest publicly-traded hospital chain, HCA Holdings Inc, reported in the fourth quarter of 2016 that its ratio of bad debt to gross revenues of more than $11 billion was 7.5 percent.

One of the first to test this new payment strategy was Novant Health, headquartered in North Carolina with 14 medical centers and hundreds of outpatient and physician facilities. It saw patient debt increase when more local employers started adopting high deductible plans, including one that made its executives pay $10,000 in out-of-pocket expenses.

“To remain financially stable, we had to do something,” said April York, senior director of patient finance at Novant, whose patient default rate dropped to 12 percent from 32 percent after it started offering no interest loans through ClearBalance.

“Patients needed longer to pay. They needed a variety of options,” she said.

IMPACT ON PATIENTS

These prepayment strategies are being rolled out by hospitals across the country because the financial equation has changed so much for patients – even the insured ones.

Almost half of Americans – 45 percent – polled by the Kaiser Family Foundation said they would have difficulty paying an unexpected $500 medical bill. The average deductible this year for the least expensive of the widely used Obamacare health plans is $6,000 for an individual – an 18 percent spike since 2014 – and more than double that for a family, according to government data.

Jessica Curtis, a senior advisor at Community Catalyst, a consumer advocacy group in Boston, said the impact on patients stretches beyond personal finance.

“They delay procedures, they don’t follow advice on prescription drugs, and when they see care, they usually are for more expensive procedures because they’ve waited,” she said

Brian Sanderson, managing principal of Crowe Horwath’s healthcare services group, said communicating with patients and providing longer repayment options is a good strategy since hospital margins have shrunk, thanks to growing unpaid medical bills from consumers.

“A well informed patient is more likely to meet their obligations,” he said. “It’s just good patient relations and it helps to minimize bad debt.”

Hospitals are doing what they can to retain patients while helping them pay medical bills that could run thousands of dollars. Many are expanding charity eligibility, and hiring companies like ClearBalance, AccessOne and Commerce Bank to provide loans to patients no matter what their credit. Most carry no interest rate for the patient, and could be extended far longer than the few months that hospitals once required before sending a bill to collections.

“People are more likely to pay a bank than a hospital,” said Mark Huebner, director of Health Services Financing at Commerce Bank, which offers its line of credit at more than 200 hospitals.

“People are aware that banks will come after them. Banks do collect on debt, and hospitals generally have been more relaxed,” he said.

Wake Forest Baptist Medical Center in North Carolina had seen its bad debt creep up in recent years as more patients saw out of pocket expenses soar, with some deductibles reaching $15,000.

“We’ve seen that many patients are unaware of the increases in their deductibles,” said CFO Chad Eckes. Wake Forest now asks for payment before non-emergency services are provided but also offers zero interest, longer repayment options.

“It’s a challenging position,” he said. “It’s a discussion no one wants to be in, and none of us enjoy.”

(Editing by Caroline Humer and Edward Tobin)

Iowa poised for major overhaul to gun regulations

By Timothy Mclaughlin

(Reuters) – Iowa lawmakers approved on Thursday amended legislation that would enact sweeping changes to the state’s gun regulations, including a “stand your ground” provision, and sent it to the governor for final approval.

The bill, backed by the National Rifle Association, says a law-abiding person does not have to retreat before using deadly force.

A similar measure in Florida was thrust into the national spotlight in 2012 after the shooting death of unarmed teenager Trayvon Martin by neighborhood watch member George Zimmerman, who was acquitted of murder after the law was included in jury instructions.

At least 24 other states have similar measures, according to the National Conference of State Legislatures.

The Iowa bill allows for children under the age of 14 to use handguns while under the supervision of an adult who is 21 or older. It also says gun owners with permits can bring concealed handguns into capitol buildings.

Republican state Representative Matt Windschitl said on the House floor on Thursday the bill was, “the most monumental piece of Second Amendment legislation this state has ever seen.”

The bill also would make gun permits valid for five years, with a background check required when the permit is issued. Under the current law, permits are valid for one year with an annual background check.

The bill passed the state Senate on Tuesday and the House last month. The House voted on it again on Thursday to approve changes made in the Senate before advancing it to the desk of Republican Governor Terry Branstad.

A spokesman for Branstad said in an email that the governor will review the bill.

The bill has been criticized by gun control advocates, who say it could increase gun violence.

“We have had very good gun laws,” the Reverend Cheryl Thomas of Iowans for Gun Safety said by telephone. “With the passage of this law, we are going to lose that status.”

Iowans for Gun Safety wants Branstad to veto the measure.

Previous attempts to change the state’s gun regulations have been blocked by Democrats, who held a majority in the Senate until November.

Following the election, Republican lawmakers control the Senate, House and governor’s office for the first time in nearly two decades.

Republicans have used their majority to push through a number of bills during this legislative session, including drastic changes to the state’s collective bargaining laws.

(Reporting by Timothy Mclaughlin in Chicago; Editing by Bill Trott and Muralikumar Anantharaman)

Iowa moves to cut Medicaid funding for Planned Parenthood

Planned Parenthood in Texas

By Timothy Mclaughlin

(Reuters) – The Republican-controlled Iowa state senate voted on Thursday to cut Medicaid funding for family planning services to abortion providers including Planned Parenthood.

State senators passed the bill 30-20, advancing it to the Republican-controlled House. The vote was along party lines, with one independent voting in favor of the measure.

Republican Governor Terry Branstad has said he supports the bill.

Planned Parenthood draws the ire of many Republicans because it provides abortions, and Republican President Donald Trump has pledged to defund the organization.

“This change will allow Iowa to restrict government funding to family planning services away from organizations that perform abortions that are not medically necessary,” Republican Senator Amy Sinclair, one of the bill’s sponsors, said on Thursday before the vote.

Planned Parenthood denounced the vote.

“The Republican lawmakers who continue to advance this bill should be ashamed of themselves. They are playing political games, with the lives of low-income Iowans at stake,” Planned Parenthood of the Heartland said in a statement.

“This bill does nothing to advance their extremist agenda to limit access to abortion. Instead, it blocks access to crucial family planning services for thousands of Iowans – the very services that most effectively prevent abortion. It’s a self-serving, misleading and dangerous political game.”

The bill directs the Iowa Department of Human Services to discontinue the Medicaid family planning network waiver on July 1 and replace it with a state family planning services program.

Eligibility requirements for the new network would remain the same, but no funding would be provided to organizations that provide abortions or maintain facilities where abortions are carried out.

Planned Parenthood is Iowa’s largest abortion provider with 12 clinics in the state, but no public money is used for abortions, according to the Des Moines Register.

Branstad has proposed paying for the new state-run program by shifting $2.8 million in funds from services for vulnerable adults, families and children, the newspaper reported.

Planned Parenthood is also facing a funding cut in Texas, where a judge is considering the move, which the organization has challenged in court.

(Reporting by Timothy Mclaughlin in Chicago; Editing by Cynthia Osterman)

Suspect in fatal ambush of two Iowa police officers captured

By Brian Frank

DES MOINES, Iowa (Reuters) – Police in Iowa said on Wednesday they have captured a man suspected of killing two police officers hours earlier as they sat in their patrol cars in what authorities called separate and unprovoked attacks.

Scott Michael Greene, who is 46 and white, was taken into custody after police named him as their suspect in the ambushes, a police spokeswoman in Urbandale, Iowa said. (For live coverage of the Iowa police shootings click here:

Police said they found the first slain officer’s body about 1:06 a.m. (2.06 a.m. ET) in Urbandale, an affluent Des Moines suburb, and the second about 20 minutes later about two miles (3 km) away, in Des Moines. Police declined to release the names of the officers awaiting notification of their families.

It was unclear what provoked Wednesday’s attacks, Des Moines police department spokesman Paul Parizek told a news conference prior to Greene’s arrest, adding that “we may never know.” But it appeared the suspect had a recent run-in with police.

A 10-minute video posted on YouTube last month by a user calling himself Scott Greene showed an interaction with officers following an incident at a sports stadium in which he described holding up a Confederate battle flag during the playing of the U.S. national anthem. He is heard claiming that he was assaulted.

Reuters was unable to immediately confirm whether the video was made by the suspect, whose face does not appear in it. It records a male voice arguing with police over the incident.

The Confederate flag is a racially charged symbol for its association with the pro-slavery South in the U.S. Civil War.

(Reporting by Brendan O’Brien in Milwaukee and Gina Cherelus, Dave Ingram and Michael Flaherty in New York; Writing by Scott Malone; Editing by Lisa Von Ahn and Will Dunham)

Iowa police searching for suspect in ambush slaying of two officers

A police photographer takes pictures of a bullet holes in a Des Moines' police vehicle after two police officers were shot and killed in separate attacks described as "ambush-style" in Des Moines, Iowa,

By Brian Frank

DES MOINES, Iowa (Reuters) – Two Iowa police officers were shot dead in separate “ambush-style” killings as they sat in their patrol cars early on Wednesday, and police said they were urgently seeking a suspect they consider armed and dangerous.

Police are searching for a local man named Scott Michael Greene, 46. A police photo showed him as white, with a light beard.

“Our detectives are looking to speak with Mr. Green right now,” Des Moines police department spokesman Paul Parizek told a news conference. “He is definitely someone that we want to talk to.”

One officer was found dead about 1 a.m. local time in Urbandale, an affluent suburb of Des Moines. The second officer was found dead about 1:30 a.m. local time in the city.

“These officers were ambushed,” Parizek said, adding that they were shot while sitting in their patrol cars about 2 miles (3 km) apart.

“There is a clear and present danger to police officers right now,” he said.

The apparently unprovoked attacks came two years after two New York Police Department officers were shot dead while sitting in their patrol car in Brooklyn, by a man who said he wanted to avenge the deaths of unarmed black men killed by police.

It was unclear what provoked Wednesday’s attack, Parizek said, adding that “we may never know.”

A police cruiser at the site of the Des Moines shooting was riddled with three bullet holes, according to a Reuters witness there.

“An attack on public safety officers is an attack on the public safety of all Iowans,” Ben Hammes, a spokesman for Governor Terry Branstand, said in a statement. “We call on Iowans to support our law enforcement officials in bringing this suspect to justice.”

Before the shootings in Iowa, 50 police officers had died by gunfire, two accidentally, in the line of duty in the United States this year, according to the Officer Down Memorial Page website.

“To see this pattern that is developing – that’s what’s unconscionable,” said House of Representatives Speaker Paul Ryan during an interview with radio host Hugh Hewitt. “If it’s a random, mentally ill person, it’s one thing. But it’s people consciously going out and doing this.

“We have a lot of work to do in our communities to heal.”

Wednesday’s shootings come seven months after two Des Moines officers were killed when their vehicle was hit by a wrong-way drunken driver. Another Des Moines police officer died in a motorcycle accident in August.

Officers in Dallas and Baton Rouge, Louisiana, were the targets of deadly ambushes earlier this year after police killed two black men in separate incidents in a Minnesota suburb and Baton Rouge. Philadelphia police officers have been deliberately targeted by a gunman twice this year.

(Reporting by Brendan O’Brien in Milwaukee and Gina Cherelus, Dave Ingram and Michael Flaherty in New York; Writing by Scott Malone; Editing by Lisa Von Ahn)

Chinese National’s Seed Theft in Iowa Exposes Vulnerability

File photo of a U.S. and Iowa state flag are seen next to a corn field in Grand Mound, IOWA

ARLINGTON, Iowa (Reuters) – Tim Burrack, a northern Iowa farmer in his 44th growing season, has taken to keeping a wary eye out for unfamiliar vehicles around his 300 acres of genetically modified corn seeds.

Along with other farmers in this vast agricultural region, he has upped his vigilance ever since Mo Hailong and six other Chinese nationals were accused by U.S. authorities in 2013 of digging up seeds from Iowa farms and planning to send them back to China.

The case, in which Mo pleaded guilty in January, has laid bare the value — and vulnerability — of advanced food technology in a world with 7 billion mouths to feed, 1.36 billion of them Chinese.

Citing that case and others as evidence of a growing economic and national security threat to America’s farm sector, U.S. law enforcement officials are urging agriculture executives and security officers to increase their vigilance and report any suspicious activity.

But on a March 30 visit to Iowa, Justice Department officials could offer little advice to ensure against similar thefts, underlining how agricultural technology lying in open fields can be more vulnerable than a computer network or a factory floor.

“It may range down to traditional barriers like a fence and doing human patrols to making sure you get good visuals on what’s occurring,” Assistant Attorney General John Carlin, head of the Justice Department’s national security division, said when touring Iowa State University.

But agriculture sector executives say fences and guards are not feasible, due to the high cost and impracticality of guarding hundreds of thousands of acres.

Tom McBride, intellectual property attorney at Monsanto — one of the firms whose seeds were targeted by Mo — said it safeguards its genetically modified organism (GMO) technology by protecting its computers, patenting seeds and keeping fields like Burrack’s unmarked. Monsanto says it is not considering physical barriers like fences or guards.

The FBI and the U.S. Justice Department say cases of espionage in the agriculture sector have been growing since Mo was first discovered digging in an Iowan field in May 2011. Over the past two years, U.S. companies, government research facilities and universities have all been targeted, according to the FBI.

Although prosecutors were unable to establish a Chinese government link to Mo’s group, the case adds to U.S.-China frictions over what Washington says is increasing economic espionage and trade secret theft by Beijing and its proxies.

A U.S. law enforcement official told Reuters the agency looked for a connection between the Chinese government and the conspiracy carried out by Mo.

“In cases like this, we can see connections, but proving to the threshold needed in court requires that we have documents that the government has directed this,” the official said. “It’s almost impossible to get.”

A Chinese embassy spokesman in Washington, Zhu Haiquan, said he did not have detailed information on the Mo case but that China “stands firm” on the protection of intellectual property and maintains “constant communication and cooperation” with the U.S. government on the issue.

On his visit to Washington last September, President Xi Jinping reiterated China’s denial of any government role in the hacking of U.S. corporate secrets.

Mo, an employee of Chinese firm Kings Nower Seed, pleaded guilty to stealing seed grown by U.S. firms Monsanto, Dupont Pioneer and LG Seeds.

Prosecutors say he specifically targeted fields that grow the parent seeds needed to replicate GMO corn. The FBI says it suspects he was given the location by workers for the seed companies, but did not charge any employees.

DuPont Pioneer and LG Seeds declined to comment for this story.

Mo, whose case was prosecuted by the Justice Department as a national security matter rather than a simple criminal case, now faces a sentence of up to five years in prison. Five others charged in the case are still wanted by the FBI and are believed to have fled to China or Argentina. Charges were dropped against a sixth Chinese suspect.

NATIONAL SECURITY

The number of international economic espionage cases referred to the FBI is rising, up 15 percent each year between 2009 and 2014 and up 53 percent in 2015. The majority of cases reported involve Chinese nationals, the U.S. law enforcement official told Reuters. In the agriculture sector, organic insecticide, irrigation equipment and rice, along with corn, are all suspected to have been targeted, including by Chinese nationals, the official said.

Mo Hongjian, vice president of Kings Nower Seed’s parent company, Beijing Dabeinong Technology Group, declined to comment on the case or on the company’s connection with the Chinese government.

The parent firm is privately owned, but says it receives government money for research in “science and technology.”

China bans commercial growing of GMO grains due to public opposition to the technology and imports of GMO corn have to be approved by the agriculture ministry. Still, President Xi called in 2014 for China to innovate and dominate the technique, which promises high yields through resistance to drought, pests and disease.

In January, a Greenpeace report found some Chinese farmers are illegally growing GMO corn whose strains belong to companies including Monsanto, Syngenta and DuPont Pioneer.

Monsanto, which supplies Burrack’s seed, said it can block foreign groups who request to tour their lab and learning center in Huxley, Iowa. For the past few years, Monsanto says it has run its own background checks on Chinese delegations that ask for a tour, and, if they are approved, boosts security to be sure they do not steal anything or take pictures.

In Washington, U.S. senators have called for a review of the $43 billion deal by state-owned ChemChina to buy Swiss seed group Syngenta, which generates nearly a quarter of its revenue from North America.

Acquiring GMO seed and successfully recreating a corn plant would allow Chinese companies to skip over roughly eight years of research and $1.5 billion spent annually by Monsanto to develop the corn, the company says.

Burrack’s farm itself was not targeted by Mo, though he grows the Monsanto parent seed that the Chinese national was digging for. Burrack grows the corn in two fields in front of and behind his house where he can watch them, a small part of his 2,800-acre farm.

He said he is told by Monsanto where and when to plant the parent seed, but has never been told to keep what he is planting a secret.

“What no one seems to understand is that they’re stealing from people like me,” Burrack said. “They’re stealing the research that farmers pay for when they buy Monsanto seed.”

(Reporting by Julia Edwards; Additional reporting by Shuping Niu in Beijing; Editing by Kevin Drawbaugh and Stuart Grudgings)