Iowa House votes to fund $150 million raise promised to Medicaid management firms

Lawmakers in the Iowa House voted Thursday to give an additional $150 million to the companies managing Iowa's privatized Medicaid program, fulfilling contract terms negotiated last year.

Last August, state officials agreed to give 7.5 percent more state money to the companies managing Iowa's privatized Medicaid program. The money approved Thursday covers the cost of those increases, as well as additional enrollment in the program, which covers about 680,000 poor or disabled Iowans.

The House approved the funds as part of a $1.9 billion health and human services budget for next year, which passed on a vote of 51-44. The Senate still needs to approve the measure, and it must be signed by Gov. Kim Reynolds.

In total, the state would be spending about $205 million more on Medicaid in the current fiscal year, which ends June 30, than it did in the previous fiscal year.

Read more: https://www.desmoinesregister.com/story/news/politics/2019/04/11/iowa-house-votes-150-million-raise-for-privatized-medicaid-management-companies-unitedhealthcare/3435162002/