State leaders have agreed to help private Medicaid management companies shoulder huge losses they’ve suffered in covering more than 500,000 poor or disabled Iowans, documents released Friday show.
The three national companies have complained about “catastrophic” losses on the Iowa project, which started last April. They have pleaded for the government to help them make up for about $450 million in red ink.
Department of Human Services leaders signed contract amendments in February, under which the government agreed to shoulder losses beyond a certain point, the newly disclosed memos show.
The documents were released Friday afternoon in response to a Des Moines Register open-records request made Jan. 12. A previous Register open-records request led to the December disclosure that the companies were complaining of severe losses and demanding higher rates for a “severely underfunded” system, despite Gov. Terry Branstad’s public assurances the project was going well.