IOWA CITY, Iowa (AP) — Gov. Terry Branstad’s administration will turn over management of Iowa’s $4.2 billion Medicaid program to four companies beginning Jan.
The Iowa Department of Human Services announced Monday that Amerigroup Iowa; AmeriHealth Caritas Iowa; United Healthcare Plan of the River Valley; and WellCare of Iowa were selected after a bidding process.
The announcement marks a key point in Branstad’s transformation of Medicaid, the health care program for the poor and disabled that serves 560,000 Iowans.
The companies will coordinate services for beneficiaries through networks of providers.
While critics are concerned that this shift will hurt patients, Branstad argues that having managed care organizations run the program will contain costs that have risen sharply while improving outcomes. The state says patients will receive the same benefits but the new system should reduce unnecessary services. This modernization initiative aims to improve quality and access through better coordinated cate, promote accountability outcomes and create a more predictable and sustainable Medicaid budget.
“This patient-centered approach will mean that Medicaid members get the right care, at the right time, and in the right setting,” said DHS Director Charles M. Palmer. “That will lead to a healthier Medicaid population, and that’s good news for members and Iowa taxpayers who make this program possible.”
The cost of delivering Medicaid has grown 73 percent since 2003 at more than $4.2 billion in the last fiscal year, including $1.39 billion in state general fund taxpayer dollars. The Iowa High Quality Health Care Initiative allows the state to hire modern health plans to coordinate care and manage spending. Moving to a managed care approach and capitated rate allows the state to achieve the goal of a more stable budget.
“These companies have demonstrated that they can manage Iowans’ care so they’ll be connected with the services they need to help them lead healthier lives,” said Palmer. “Starting January 1, these experienced MCOs are positioned to help us achieve savings at a time when there is an ever-growing demand on our state’s medical assistance program.”
This new approach for the Medicaid program will be called the IA Health Link. With the announcement of awards, DHS will launch a targeted communications campaign with Medicaid members, stakeholder organizations, providers, and other interested audiences about upcoming enrollment and program activities. “We’ll keep Iowans informed about their choices and how this patient-centered approach can help improve the overall health of the member,” Palmer said. “Through the IA Health Link program, we’ll improve the coordination of care for Iowans who receive health care assistance and provide greater predictability in Medicaid spending for all Iowa taxpayers.”
