DHS waives sanctions at start of Iowa’s new Medicaid system

The state agency overseeing Iowa’s transition to a privatized Medicaid program waived any possible sanctions against three insurance companies during the first two months of the new system, and it didn’t inform health advocates or lawmakers about the plans.

The Iowa Department of Human Services issued no written warnings or corrective action plans in April and May to the insurance companies that now run the state’s Medicaid program, according to information obtained by The Associated Press through a public records request. Fees for any purported violations were also waived.

Written warnings, corrective action plans and fees are among the compliance measures that DHS can take under state contracts signed with Amerigroup, AmeriHealth Caritas and UnitedHealthcare. The department had discretion to hold off on such sanctions, according to spokeswoman Amy Lorentzen McCoy, and doing so was ultimately the decision of DHS Director Chuck Palmer and Mikki Stier, the agency official who oversees Medicaid.

Processing Medicaid claims in a timely manner and resolving appeals and grievances are among several performance requirements that are subject to sanctions.

Read more: http://www.desmoinesregister.com/story/news/2016/08/21/dhs-waives-sanctions-at-start-of-iowa-new-medicaid-system/89076932/