DES MOINES, Iowa (AP) — One of the three insurance companies providing services for the Iowa Medicaid program is quitting.
The Iowa Department of Human Services says UnitedHealthcare informed the state Friday it would leave the in the next several months.
DHS Director Jerry Foxhoven says the 400,000 Medicaid recipients with UnitedHeathcare will be asked to choose one of the other two companies, Amerigroup of Iowa or Centene Corp. subsidiary Iowa Total Care for coverage.
Gov. Kim Reynolds says she ended negotiations with UnitedHealthcare on Friday when the company dictated contract terms she believed unreasonable.
Foxhoven says the company wanted full payment without meeting all required performance requirements in its contract.
UnitedHealthcare says persistent funding and program design challenges made it impossible for them to provide the quality care and service they believe people deserve.
Former Gov. Terry Branstad hired private companies to manage the Medicaid program previously run by the state in 2016 and it has been the target of criticism since for cuts in services, reported slow payment of bills and doubts about its promised savings to taxpayers.