Iowa is severing ties with one of its health care providers.
Governor Kim Reynolds released a statement Friday afternoon stating she has ended negotiations between the State of Iowa and UnitedHealthcare because of terms she believed to be unreasonable and unsustainable.
Reynolds says the state has continued to work in good faith, along with the legislature to make improvements to the managed care system, including a substantial increase to funding this past year.
She says “Unfortunately, UnitedHealthcare continued to make additional demands that she found to be unacceptable, including a provision that would remove pay for performance measures that would hold them accountable.
Reynolds says the state will work with UnitedHealthcare over the next several months to minimize disruption and ensure a smooth transition to the two other managed care companies.