Iowa saved $126 million from privatizing its Medicaid program, which is barely half of what the state’s top official originally predicted.
Officials also have failed to file quarterly reports on its program, as required by state law, the Associated Press reported.
In 2015, former Gov. Terry Branstad (R) originally predicted that handing the Medicaid reins over to private insurers would save the state about $232 million. One Democratic state senator, who called for the audit report released Monday, noted that the findings are still incomplete and do not include millions of payments still owed to providers.
“The partial review of the Medicaid privatization disaster by the departing state auditor is a big pile of excuses with no good answers for Iowa taxpayers who are being ripped off,” Sen. Pam Jochum said in a statement.
Jochum and other Democratic critics have long questioned whether Medicaid managed care is producing any savings, the AP reported. Iowa officials announced in August that they were giving Amerigroup and UnitedHealthcare, which manage the program, an added $103 million because the insurers were sustaining losses. Others have also complained that care quality has deteriorated, and providers say reimbursements under the new system are slow.
Meanwhile, the office of current Gov. Kim Reynolds said privatization was necessary, with costs growing at an untenable rate.
“Our state is now on a path to sustainability, and the governor is working to ensure Iowa has a program that better helps improve patient health,” spokeswoman Brenna Smith told the AP.
In an email to McKnight’s, Iowa Health Care Association VP Lori Ristau said the audit results will not impact how providers in the state operate.
“The Iowa Health Care Association is keeping an eye on the audit results; but regardless of the outcome, our member facilities will remain focused on providing the best care possible to their residents,” she said.
