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State’s Medicaid expenses to increase 6.5% under new contracts

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Iowa’s total Medicaid spending will increase by 8.6% this fiscal year, under new contracts with the state’s two managed care organizations, the Iowa Department of Human Services announced today. The department has signed contracts for fiscal 2020, which began July 1, with Amerigroup Iowa and Iowa Total Care. The new contracts represent a year-over-year increase of $386 million in rates, with the state’s share of that increase being $115 million, or a 6.5% increase from fiscal 2019. The rates include additional funding for providers, including nursing facilities, federally qualified health centers, intermediate care facilities for the intellectually disabled and rural health clinics, as well as increased access to services, according to a news release. “The negotiated contract ensures greater health care access for those who need it and demands more accountability from the managed care organizations involved in the program,” Gov. Kim Reynolds said in a statement. A summary of the new contract provisions can be found here.