The Des Moines Register has obtained new documents showing the for-profit companies running Iowa’s Medicaid program are complaining about “drastic” losses. One company’s manager describes the process as a “catastrophic experience,” according to the newspaper. Governor Terry Branstad is downplaying the report.
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On April 1st, the 560-thousand Iowans who get their health insurance through government-paid Medicaid were shifted into private “managed care” plans. Three companies are now managing Medicaid patient care in Iowa. In October, the governor authorized paying those companies 33-million dollars MORE than was outlined in the original contract. According to The Des Moines Register, the companies are saying that’s not enough to cover the losses. Branstad says “there no additional money” being offered to the companies.
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Branstad’s current state budget plan is based on more than 100-million dollars worth of savings from switching to privately-managed care for Medicaid patients. A Democrat who’s a member of the state senate says Branstad’s team is managing the program in a “haphazard” way. State Senator Liz Mathis (MATH-iss) of Cedar Rapids says as a result, the “health and safety of one in six Iowans is at risk” and the program must be fixed in 2017.