Molina and Elevance win Iowa Medicaid contracts after California win

Molina and Elevance win Iowa Medicaid contracts after California win
Molina and Elevance win Iowa Medicaid contracts after California win

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Diving brief:

  • Iowa will soon have three health insurers to run its $7 billion Medicaid program. Elevance and Molina have won contracts to provide managed care in the state starting next summer, Iowa announced Wednesday.
  • Iowa plans to award the four-year contracts to Amerigroup Iowa of Elevance, which already has a Medicaid contract in the state, and newcomer Molina Healthcare of Iowa, starting in July 2023, the report said. Ministry of Health and Social Services.
  • Iowa Total Care, which is owned by Centene, has a managed care contract with Iowa that lasts through 2025.

Overview of the dive:

Starting next year, Centene, Elevance and Molina will help manage Iowa’s Medicaid program, which supports more than 790,000 low-income residents in the state.

This is Molina’s first contract in Hawkeye State, as the California-based insurer continues to take market share from Medicaid after California’s victory last week. California — the nation’s largest Medicaid market — has also awarded Medicaid contracts to Elevance and Centene.

Centene lost contracts in three counties, including Los Angeles, causing the company’s stock to plummet. The insurer expressed disappointment with the decision and said it was weighing all options to appeal.

Iowa said adding a third managed care organization to its Medicaid program is expected to increase choice for consumers and help the state increase community services, improve maternal health, support families in reception through Medicaid and to improve administrative services.

The state legislature voted to privatize Medicaid in 2016 in a controversial move, as providers said handing the program over to for-profit entities would create barriers to accessing health care. Originally, three payers held managed care contracts, but AmeriHealth Caritas pulled out in 2017 and UnitedHealthcare in 2019, citing significant financial losses from their in-state contracts.

Five vendors bid for contracts following Iowa’s request for proposals in February. Of those bidders, Aetna Health of Iowa and the nonprofit organizations CareSource Iowa and UCare Iowa were not selected.

DHHS did not say why these bidders did not receive contracts. But according to a review of the proposals by Des Moines Register, officials found weaknesses in the individual applications, including limited managed care experience and a lack of details about how the initiatives would be carried out.

Contracts awarded Wednesday are worth about $6.5 billion each year.

The article is in French

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. Molina Elevance win of contracts Iowa Medicaid after win California

. Molina Elevance win Iowa Medicaid contracts California win

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