DES MOINES, Iowa (AP) - Three private insurance companies that oversee Medicaid in Iowa say they expect to lose about $450 million in the first year of administering the health care program for the poor and disabled.
Representatives for UnitedHealthcare, AmeriHealth Caritas and Amerigroup disclosed the estimate to lawmakers during a budget committee meeting Wednesday. The figures account for financial losses since the companies took over Medicaid last April.
AmeriHealth Caritas estimated losses in excess of $200 million; Amerigroup figured losses at about $150 million; and UnitedHealthcare estimated losses in excess of $100 million.
Company representatives and the Iowa Department of Human Services say losses were expected in the first year.
It’s unclear how the figures will impact Iowa’s future Medicaid spending. The state is preparing to negotiate with the companies over how much to pay for each Medicaid patient.
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