Centene to replace AmeriHealth in managing Iowa's Medicaid program

Iowa has picked one of the country’s largest health-care companies to help run its Medicaid program.

The Iowa Department of Human Services announced Monday that a subsidiary of Centene will replace AmeriHealth Caritas, starting in July 2019. AmeriHealth decided to leave the state last fall, after losing hundreds of millions of dollars covering care for more than 200,000 poor or disabled Iowans on Medicaid.

The state agency provided no details on why it is offering a contract to Centene’s subsidiary, Iowa Total Care, but not to a second bidder, Trusted Health Plan.

Iowa’s then-governor, Terry Branstad, decided in 2015 to hire for-profit companies to run the state’s $5 billion Medicaid program. The shift to private management has been intensely controversial. Supporters, including Gov. Kim Reynolds, say it is leading to more efficient, effective care. Critics, including the Democrats vying to unseat Reynolds next fall, say it has led to deep cuts in services for disabled Iowans.

Read more: https://www.desmoinesregister.com/story/news/health/2018/05/21/centene-replace-amerihealth-iowa-medicaid-manager/630758002/