Iowa officials will increase payments to three managed care companies overseeing the state's Medicaid beneficiaries by $33.2 million, reports The Gazette.
High prescription drug prices and the cost of covering new enrollees led to the increased payments, according to the report.
Iowa privatized its $5 billion Medicaid program April 1. AmeriHealth Caritas Iowa, Amerigroup Iowa and UnitedHealthcare of the River Valley manage the state's 560,000 Medicaid enrollees.
Iowa Gov. Terry Branstad (R) said despite the boost in payments, Iowa anticipates $100 million to $110 million in savings this year.
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