Iowa has officially moved its Medicaid program from fee-for-service to a managed care model led by three private insurers, AmeriHealth Caritas Iowa, Amerigroup Iowa and UnitedHealthcare of the River Valley, reports The Gazette of Cedar Rapids. A fourth insurer--WellCare--lost its bid to co-manage the Medicaid program after failing to disclose a previous false claims settlement.
The state says the move will help control the rising costs of Medicaid, though it has faced strong opposition from both the Iowa Hospital Association and Medicaid recipients who rallied at the State Capitol in protest. The transition so far has been quiet, according to The Gazette, but a spokeswoman for the state's Department of Human Services says she expects more "bumps in the road" once providers start to submit claims. Article