State agrees to help Medicaid companies shoulder huge losses

[TexasTowelie]

State leaders have agreed to help private Medicaid management companies shoulder huge losses they’ve suffered in covering more than 500,000 poor or disabled Iowans, documents released Friday show.

The three national companies have complained about “catastrophic” losses on the Iowa project, which started last April. They have pleaded for the government to help them make up for about $450 million in red ink.

Department of Human Services leaders signed contract amendments in February, under which the government agreed to shoulder losses beyond a certain point, the newly disclosed memos show.

The documents were released Friday afternoon in response to a Des Moines Register open-records request made Jan. 12. A previous Register open-records request led to the December disclosure that the companies were complaining of severe losses and demanding higher rates for a “severely underfunded” system, despite Gov. Terry Branstad’s public assurances the project was going well.

Read more: http://www.desmoinesregister.com/story/news/health/2017/03/24/state-agrees-help-medicaid-companies-shoulder-huge-losses/99593570/

[elleng]

1. Have we JUST seen some GOOD NEWS,

Kansas and Iowa?

[TexasTowelie]

2. I'm trying.

Sometimes it is difficult to find good news though.

[elleng]

3. Seems to me you've done it tonight!

[progressoid]

4. Not so good.

This is Branstad's plan to privatize Medicaid management in Iowa. He said it would save the state millions. Now it looks like it will actually cost hundreds of millions more.

Negotiations are to begin in April for rates to be paid to the Medicaid management companies for the budget year that begins July 1. The companies are expected to seek sharp increases in their payments from Iowa's Medicaid program. If they succeed, their new contracts could further pinch the state budget

.

[rurallib]

5. Funny thing, there were no problems when the state ran the system

overhead was very low and payments were made on time.

Branstad unilaterally hijacked an extra 10% on top of the original overhead to fatten the paychecks of the middle man that does nothing. That was money that used to go to care for consumers, now it goes to the administrators.

Then Branstad told all was hunky-dorry. But those damn democrats found out last fall it wasn't. Despite that Iowans showing their brand new Fox like intelligence voted democrats out. Back then they wanted a huge hand out. Can't remember how much, but Branny said sure.

Now they wanted even more. With democrats having no power, we hand over a big check while cutting education, the regents universities on and on.

And Iowans seem to have no problems with this.

No it is not good for Iowa. Our governor-for-life and future ambassador to Trump's new business empire country literally robbed us blind and we said "Thank you, sir. Do you want more?"