Home Local News IOWA MEDICAID PROVIDER TO WITHDRAW FROM PROGRAM

IOWA MEDICAID PROVIDER TO WITHDRAW FROM PROGRAM

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One of three private insurance companies that help run Iowa’s Medicaid program plans to withdraw in a month.

The Iowa Department of Human Services says AmeriHealth Caritas will end its Medicaid coverage at the end of November.

The state agency also announced it would spend more money as part of new contracts with the remaining companies, Amerigroup and UnitedHealthcare.

DHS described the additional spending as a 3.3 percent rate increase, but officials did not provide more specifics.

Department director Jerry Foxhoven says the extra spending will be funded through existing agency dollars.

The move means about 215,000 Iowans enrolled in the health care program for poor and disabled people will transfer to the remaining companies.

DHS then plans to hire another company to offer coverage beginning next summer.