Medicaid delay leads to program uncertainty for Iowa children

Medicaid delay leads to program uncertainty for Iowa children

DES MOINES (AP) — Lawmakers say a delay in privatization of Iowa's Medicaid program means that most of the 37,000 children enrolled in a special health care program must transition to a new insurance carrier by the new year.

The Des Moines Register reports that Iowa terminated its contract with two companies that managed the $113 million hawk-i program, anticipating that the state's Medicaid program would be almost completely privatized by Jan. 1 and run by four companies Last week, the federal government rejected that target date, saying Iowa and the companies were not ready for the transition. The target date has been pushed back until at least March 1.

Iowa asked UnitedHealthcare and Wellmark to extend their contracts, but Wellmark declined. Iowa Medicaid Director Mikki Stier said Monday about 75 percent of the program's children are currently insured through Wellmark. Those children must transition to UnitedHealthcare until the selected private companies take over the program.

Board members for hawk-i expressed concern that some children will not have their new medical cards by the new year, let alone have time to determine whether their current doctors will accept their new insurance plan.

State Sen. Janet Petersen, a hawk-i board member, said 'I'm frustrated because we were told there was a contingency plan, and now we're told there wasn't a contingency.'

Board members for hawk-i said they would help Iowa persuade Wellmark to extend its contract until March 1.

State. Rep Ken Rizer said 'It's a Hail Mary attempt, so let's do it today so we're not delaying those letters if it doesn't work.'

Wellmark said in a statement that extending its contract is unworkable because it has already 'wound down the dedicated staff, resources, technology and vendor relationships necessary to administer' the program. Spokeswoman Traci McBee said that Wellmark is doing what it can to find an alternative solution.