DES MOINES, Iowa (AP) — Newly released documents show Iowa officials have agreed to help private Medicaid management companies shoulder huge losses they’ve suffered in covering more than 500,000 poor or disabled Iowa residents.
The three national companies have complained losing about $450 million in Iowa’s shift to private Medicaid management, which started last April.
Documents obtained by the Register through an open-records request show that Department of Human Services leaders signed contract amendments in February, under which the government agreed to shoulder some of the losses.
Department of Human Services spokeswoman Amy McCoy said Friday the agreements are expected to cost the state roughly $10 million, which would be paid more than a year from now. She says the federal government would also contribute.