The company that’s ending its contract with the state to manage care for more than 200,000 Iowa Medicaid patients is laying off hundreds of employees.

AmeriHealth Caritas was one of three private companies that signed the deal with state officials to manage care for poor, disabled and elderly Iowans enrolled in Medicaid. AmeriHealth has notified the Iowa Workforce Development agency that about 400 of its Iowa-based employees will likely be laid off in December.

AmeriHealth’s Medicaid contract with the state ends November 30. Tens of thousands of Iowans have had their medical care managed by AmeriHealth for the past year and a half. They will be assigned to one of the two remaining private insurers managing Medicaid patient care for the state.

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Private company laying off 400 after ending state Medicaid contract