Hospitals sue state over Medicaid modernization mandate
BUSINESS RECORD STAFF Nov 11, 2015 | 5:03 pm
<1 min read time
115 wordsAll Latest News, Health and WellnessThe Iowa Hospital Association and leaders of 11 hospitals are suing the state over the privatization of Iowa’s Medicaid system, saying the move would illegally take money from a trust fund to which they contribute, The Des Moines Register reported. The lawsuit, filed last week in Polk County District Court, also claims that hospitals and other health care providers are being “strong-armed” into signing contracts with the managed-care companies by Jan. 1 even though the companies have not yet set payment rates for services. The state is threatening to cut Medicaid payment rates by 10 percent to any health care provider that doesn’t sign up quickly with the managed-care companies, which the suit says is illegal.
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