California Company To Join Two Other Private Firms In Managing Iowa Medicaid

Statewide, Iowa — State officials have chosen a California based company to join two other private firms that manage Iowa Medicaid, the joint state and federal program that currently provides health care services to 800,000 disabled and low income Iowans.

State Medicaid director Elizabeth Matney says Molina Healthcare’s contract will start July 1, 2023.

The state is extending its current Medicaid contract with AmeriGroup. Iowa TotalCare’s contract for managing care for Iowa Medicaid patients runs through 2025. Matney says the goal is to divide Iowa’s Medicaid members evenly among the three managed care companies.

Hospitals and other other health care providers in the state have complained that Medicaid claims are not always being paid on time. Matney says no system is perfect, but the contract with Molina sets clear deadlines.

Then-Governor Terry Branstad oversaw the shift to private management of the Medicaid program in 2016. Democrats in the legislature say the contracts ensure profits for out-of-state companies while rural Iowa’s health care system crumbles.