Although Iowa Governor Terry Branstad (R) plans to privatize Medicaid management, many hospitals and Medicaid providers are worried about the switch, according to The Des Moines Register.
State data found Medicaid costs have increased 73 percent since 2003, according to The Gazette. To remedy the growing costs, Gov. Branstad proposed the change to privatize Medicaid earlier this year. His administration found the switch would save Iowa over $51 million dollars in the first six months, primarily through improved preventive care and fewer duplicated services.
If approved by CMS, the privatized plan would take effect Jan. 1.
Through Gov. Branstad's proposed switch, four managed care companies — Amerigroup Iowa, AmeriHealth Caritas Iowa, UnitedHealthcare Plan of the RiverValley and WellCare of Iowa — received contracts from the state.
CMS held five public forums throughout November, during which providers expressed their concerns about the fast turnaround in implementing the plan. Many believe CMS should delay or deny the proposed switch. Key concerns include trouble with reimbursement rates, inaccurate contracts and confusion among consumers.
"Trying to accomplish this in a two-month time frame and shoving this down the throats of providers is outrageous, unreasonable and shows no concern for the provider community or the patients we serve," said Mitch Harris from Des Moines-based Hematology and Oncology Center of Iowa. "It was poorly thought out, if thought out at all."
In December, CMS officials will visit Iowa and conduct a "readiness assessment" regarding the switch.