The increase is $103 million more than the state paid UnitedHealthcare and Amerigroup to administer the Medicaid benefits last year.
The additional funds come as the companies have complained the state’s reimbursement rates were too low when they rolled out the managed care program in 2016. A third health insurer, AmeriHealth Caritas, left the program in 2017 after it could not get the contract terms it wanted from Iowa officials. Managed care insurer Centene is expected to join UnitedHealthcare and Amerigroup as a third administration by July 2019, according to the report.
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