State Medicaid Director Defends Large Payment to Providers, 5:04

Jul 10, 2019

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The state of Iowa has agreed to pay two private insurance companies an additional 386 million state and federal dollars to operate the state’s Medicaid program. 

Under the newly-signed contracts, Iowa Total Care and Amerigroup will receive an eight-point six percent increase for the current fiscal year, which began on July 1.

State Medicaid Director Mike Randol told the Council on Human Services on Wednesday that reasons for the increase include changes in program and legislative requirements.

As I said I don’t like to characterize increases or raise to the managed care organizations as we set rates, more than 92 percent of those dollars are going to go out to the providers who deliver those services to our members.

Randol has said privatized Medicaid management is saving the state money, but Democratic lawmakers say these raises show that’s not the case. Iowa Total Care joined the state on July 1. It replaced United Healthcare, which left the state in June.

Renovation of Sioux City's transit maintenance and storage facility is getting a financial boost from the state.  It was among five projects to receive state Public Transit Infrastructure grants.

The Iowa Transportation Commission has awarded Sioux City $135,200 for its renovation project.   Benton County, Ames, Dubuque, and Ottumwa also received grants.