Through the approval, Iowa will pay three private companies — Amerigroup, Amerihealth and UnitedHealthcare — to manage the coverage of the state’s 560,000 Medicaid enrollees.
The transition to privatization was initially set to take place Jan. 1. But in December, the federal government pushed back the transition date to March 1. Now, the plan has been approved, but it won’t occur until April 1.
“Although we understand the state’s preference to move forward on March 1, the April 1 effective date provides additional time for Iowa to complete activities needed to ensure a smooth transition, such as completing contracts with providers and training case managers,” federal officials wrote to Gov. Branstad.
Gov. Branstad was pleased, saying the transition will “[provide] access through more doctors and will create a more sustainable Medicaid program for taxpayers.”
However, Democrats in the Senate aren’t as thrilled. “Iowans will do a better job than out-of-state corporations when it comes to overseeing the healthcare safety net we all depend on,” said Sen. Liz Mathis (D), according to the report. Other Senate Democrats believe the state still isn’t ready for the transition to privatization.
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