The increase will cover higher prescription drug costs, Gov. Terry Branstad reported, but the state will still save money on the program. In other Medicaid news, Rhode Island says enrollment there is growing and Tennessee doctors sue federal officials over a payment issue.
Iowa Public Radio:
Iowa Paying An Additional $33 Million For Medicaid Management
The State of Iowa is increasing the amount of money it pays to the three private companies managing Iowa’s Medicaid system by $33.2 million. Gov. Terry Branstad says the increase is largely due to pharmaceutical costs, which are higher than anticipated since April when the state privatized its Medicaid system. … Despite the additional payments, the governor insists Iowa will still reap the $110 million in savings projected by state actuaries. Branstad says that’s because the money Iowa is saving by privatizing Medicaid is also higher than expected, so the state can afford to increase contract rates …
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