DES MOINES, Iowa — Federal officials say Iowa is prepared to proceed with privatizing its Medicaid program and may move forward with the plan on April 1.
The federal Centers for Medicare and Medicaid Services postponed the state’s original plan to begin managed care on Jan. 1, saying too many issues remained to safely transfer the care of 560,000 poor and disabled residents to three private for-profit insurance companies.
Iowa officials had been preparing for a potential March 1 switch. In a letter sent Tuesday to Iowa Medicaid Director Mikki Stier, CMS officials say April 1 provides additional time to make a smooth transition.
Iowa Gov. Terry Branstad says managed care of the $4.2 billion Medicaid program will save money and improve efficiency.
Opponents say it could reduce health care options.
