WellCare of Iowa is one of the four managed care organizations chosen to manage Iowa’s Medicaid program. In December, Janet Phipps, director of the Iowa Department of Administrative Services, said the state should remove WellCare’s contract because the company didn’t disclose information on the $137.5 million it owed in fines to resolve a false claims litigation. WellCare disagrees, claiming it provided the state with the financial information.
Regardless, on Jan. 22, Iowa Judge Robert Blink ruled that WellCare cannot continue its operations in Iowa until it appeals Ms. Phipps’ choice. WellCare will appeal the decision on Feb. 1.
The 134,000 Iowa Medicaid enrollees who selected WellCare will now be transferred to one of the state’s other three managed care organizations: AmeriHealth Caritas, Amerigroup Iowa or UnitedHealthcare of the RiverValley.
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