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Branstad: Remaining 3 companies will offer Medicaid services

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December 21st, 2015 by Ric Hanson

DES MOINES, Iowa (AP) — Gov. Terry Branstad says Medicaid recipients enrolled with a private company that now has a terminated state contract can be covered by one of three remaining companies set to take over the $4.2 billion program.

Branstad says three companies is an adequate number for providing managed care of Medicaid services in the state. His remarks Monday come after an official terminated the state’s contract with WellCare of Iowa on Friday.

Branstad says the Iowa Department of Human Services will contact people enrolled in WellCare to inform them about the remaining companies. Department spokeswoman Amy Lorentzen McCoy says about 140,000 people will be reassigned equally among the companies over several weeks.

WellCare says it will legally challenge its termination. McCoy says the department does not comment on pending litigation.