Dive Brief:
- Iowa Gov. Terry Branstad plans to turn over the $4.2 billion Medicaid program to four national companies beginning Jan.1, ending a 20-year relationship with Magellan Health.
- The new program ends Magellan's contracts to provide behavioral health services, worth $461 million in the latest fiscal year.
- Although Iowa DHS spokeswoman Amy McCoy said Magellan has been a "valued partner," it scored lower on review criteria than the winning companies.
Dive Insight:
Iowa Behavioral Health Association interim CEO, Kelsey Clark said, "We were shocked Magellan was not selected. It's going to be a culture shift. It's going to be a big transition, and there's going to be bumps in the road."
Association members, she added, are concerned about working with four new companies (Amerigroup, United Healthcare, WellCare Health Plans and AmeriHealth Caritas) with different billing structures and policies and less experience with Iowa's programs than Magellan. However, McCoy said the new program's approach "will help Medicaid members get the right care at the right time and int he right setting, and it encourages health care professionals to work together across service types to address the needs of the whole person."