Rep. Dave Heaton speaks at the February legislative briefing at the Washington County Courthouse. Photo by Sally Y. Hart

Medicaid privatization will go into effect April 1st in Iowa. Federal regulators approved the plan last week and State Representative Dave Heaton shared it was a relief to learn of the approval, as he’s had a couple of months of anxiety waiting to see. It was supposed to be implemented January 1st and then it was delayed to March 1st, now it will take effect April 1st.

Heaton serves as the Health and Human Services Budget chair in the House. He explains the anticipated savings is $110 million, and had the plan not been approved,”it would’ve blown the lid off the capital” and they would’ve had to address the $110 million shortfall in the budget, wiping out consideration for K-12 funding among other measures.

Three companies will manage Iowa’s Medicaid program: Amerigroup Iowa, AmeriHealth Caritas Iowa, and UnitedHealthcare Plan of the River Valley. Initially in August there was notice to award four contracts, but in December the selection of WellCare of Iowa was terminated. According to the Iowa Department of Human Services, in Fiscal Year 14, there were over 665,000 Medicaid members.