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Tuesday, Dec 1 2015

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Two Democratic Senators Question Iowa Gov.'s Plan To Move Ahead With Medicaid Privatization

Gov. Terry Branstad remains committed to proceeding with the privatization plan, even after an administrative law judge recommended that one out of the four awarded contracts be dismissed.

Two Democratic senators are questioning Republican Gov. Terry Branstad's plans to press forward with privatizing management of the state's Medicaid program after a judge's recommendation this week to throw out a contract awarded to one of four companies in line to manage the program. Iowa Administrative Law Judge Christie Scase on Wednesday recommended that Iowa throw out the contract awarded to WellCare, one of the for-profit companies hired to manage Iowa’s annual $4.2 billion Medicaid plan starting Jan. 1. Scase made the recommendation after reviewing and hearing the objections of three companies that are challenging the Iowa Department of Human Service’s competitive bidding process to award the contracts. The companies mounting the challenge — Aetna, Meridian and Iowa Total Care — say the selection process was unfair. (Clayworth, 11/28)

Gov. Terry Branstad says the state will move forward as planned with the January 1st deadline for Medicaid privatization in Iowa. That’s despite last week’s recommendation from Administrative Law Judge Christie Scase that the state dismiss one of four contracts it awarded to for-profit companies to manage Iowa’s Medicaid programs. (Boden, 11/30)

Iowa Gov. Terry Branstad said Monday that an administrative law judge's recommendation to throw out one of the state's four managed care contracts is no reason to slow the move to Medicaid privatization. He said he has appointed Iowa Department of Administrative Services Director Janet Phipps to decide whether to follow the judge's recommendation or to move forward as planned. (Pfannenstiel, 11/30)

News outlets also report on Medicaid developments in Pennsylvania, Ohio and Virginia -

Nine companies have submitted bids to enter Pennsylvania's Medicaid market, which has grown substantially this year since Gov. Wolf expanded access to coverage. But only one of the new applicants seeking to offer managed care to lower-income Pennsylvanians beginning in 2017 is a national player. (Brubaker, 11/28)

Federal officials sent a notice this month to Medicaid directors nationwide that said state policies might unreasonably restrict access, even violate federal laws designed to ensure patients get care that is considered medically necessary. The Centers for Medicare and Medicaid Services’ notice pointed out that some states limit drug access to patients with severe disease and those who prove they aren’t using alcohol or drugs. At the same time, federal leaders also called for more information about pricing of the drugs from the pharmaceutical companies. (Crane, 11/30)

Ten former employees of a counseling business have been convicted and sentenced for their roles in a scheme to defraud the Virginia Medicaid program. The Department of Justice tells media outlets the sentences of the 10 employees from Progressive Counseling Services, LLC range from 41 months to 108 months in prison. (12/1)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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