DES MOINES, Iowa (AP) — A state official says $51 million in savings cited by Iowa as a reason for privatizing its Medicaid program is a midpoint of wide-ranging estimates from experts.
Iowa Department of Human Services fiscal manager Jean Slaybaugh testified last week that experts’ estimates of savings range from nothing to 15 percent. She said she chose a midpoint of the estimates at the request of the department’s director.
The $51 million estimate was factored into the state budget passed by the Legislature earlier this year.
The state plans to sign contracts with four companies Friday that would privatize Medicaid management on Jan. 1. The move requires federal approval.
The Des Moines Register reports Slaybaugh testified as part of a request by Aetna, which wasn’t chosen, for a stay in signing contracts. A judge denied the request.
