State officials announced Monday they plan to award contracts to four bidders who will participate in transforming Iowa’s $4.2 billion Medicaid program into a risk-based system that will enlist private health care vendors to coordinate care and manage spending for a program serving about 560,000 Iowans.
Charles Palmer, director of the Iowa Department of Human Services, said his agency issued a notice of intent to award contracts for Gov. Terry Branstad’s Medicaid Modernization initiative to Amerigroup Iowa, Inc.; AmeriHealth Caritas Iowa, Inc.; UnitedHealthcare Plan of the River Valley, Inc.; and WellCare of Iowa, Inc.
“This patient-centered approach will mean that Medicaid members get the right care, at the right time, and in the right setting,” Palmer said in a statement. “That will lead to a healthier Medicaid population, and that’s good news for members and Iowa taxpayers who make this program possible.”
The cost of delivering Medicaid has grown 73 percent since 2003 at more than $4.2 billion in the last fiscal year, including $1.39 billion in state general fund taxpayer dollars, Palmer noted.
Branstad said his administration projects savings of $51 million for the state by going to a managed care system similar to what about 25 other states have done. “We think that’s a reasonable estimate,” Branstad told reporters during his weekly news conference on Monday.
He said the changeover is slated to take effect Jan. 1.
DHS officials issued a request for proposals on Feb. 16 and the state received 11 bids from potential vendors, with one withdrawing. According to the DHS, the modernization initiative aims to improve quality and access through better coordinated care, to promote accountability for outcomes and to create a more predictable and sustainable Medicaid budget.
The Iowa High Quality Health Care Initiative allows the state to hire modern health plans to coordinate care and manage spending. Moving to a managed care approach and capitated rate allows the state to achieve the goal of a more stable budget, according to a DHS statement.
“These companies have demonstrated that they can manage Iowans’ care so they’ll be connected with the services they need to help them lead healthier lives,” said Palmer. “Starting Jan. 1, these experienced MCOs are positioned to help us achieve savings at a time when there is an ever-growing demand on our state’s medical assistance program.”
The new approach for the Medicaid program will be called the IA Health Link. With Monday’s announcement of awards, DHS officials say they will launch a targeted communications campaign with
Medicaid members, stakeholder organizations, providers, and other interested audiences about upcoming enrollment and program activities.
“We’ll keep Iowans informed about their choices and how this patient-centered approach can help improve the overall health of the member,” Palmer said in a statement. “Through the IA Health Link program, we’ll improve the coordination of care for Iowans who receive health care assistance and provide greater predictability in Medicaid spending for all Iowa taxpayers.”
http://thegazette.com/subject/news/...for-medicaid-managed-care-transition-20150817
Charles Palmer, director of the Iowa Department of Human Services, said his agency issued a notice of intent to award contracts for Gov. Terry Branstad’s Medicaid Modernization initiative to Amerigroup Iowa, Inc.; AmeriHealth Caritas Iowa, Inc.; UnitedHealthcare Plan of the River Valley, Inc.; and WellCare of Iowa, Inc.
“This patient-centered approach will mean that Medicaid members get the right care, at the right time, and in the right setting,” Palmer said in a statement. “That will lead to a healthier Medicaid population, and that’s good news for members and Iowa taxpayers who make this program possible.”
The cost of delivering Medicaid has grown 73 percent since 2003 at more than $4.2 billion in the last fiscal year, including $1.39 billion in state general fund taxpayer dollars, Palmer noted.
Branstad said his administration projects savings of $51 million for the state by going to a managed care system similar to what about 25 other states have done. “We think that’s a reasonable estimate,” Branstad told reporters during his weekly news conference on Monday.
He said the changeover is slated to take effect Jan. 1.
DHS officials issued a request for proposals on Feb. 16 and the state received 11 bids from potential vendors, with one withdrawing. According to the DHS, the modernization initiative aims to improve quality and access through better coordinated care, to promote accountability for outcomes and to create a more predictable and sustainable Medicaid budget.
The Iowa High Quality Health Care Initiative allows the state to hire modern health plans to coordinate care and manage spending. Moving to a managed care approach and capitated rate allows the state to achieve the goal of a more stable budget, according to a DHS statement.
“These companies have demonstrated that they can manage Iowans’ care so they’ll be connected with the services they need to help them lead healthier lives,” said Palmer. “Starting Jan. 1, these experienced MCOs are positioned to help us achieve savings at a time when there is an ever-growing demand on our state’s medical assistance program.”
The new approach for the Medicaid program will be called the IA Health Link. With Monday’s announcement of awards, DHS officials say they will launch a targeted communications campaign with
Medicaid members, stakeholder organizations, providers, and other interested audiences about upcoming enrollment and program activities.
“We’ll keep Iowans informed about their choices and how this patient-centered approach can help improve the overall health of the member,” Palmer said in a statement. “Through the IA Health Link program, we’ll improve the coordination of care for Iowans who receive health care assistance and provide greater predictability in Medicaid spending for all Iowa taxpayers.”
http://thegazette.com/subject/news/...for-medicaid-managed-care-transition-20150817
