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Iowa official terminates contract with Medicaid company

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December 19th, 2015 by Ric Hanson

DES MOINES, Iowa (AP) — An official has terminated Iowa’s contract with a private company that was scheduled to help manage the state’s $4.2 billion Medicaid program. Iowa Department of Administrative Services Director Janet Phipps released a report Friday night that terminates the Iowa Department of Human Services’ contract with WellCare of Iowa.

Phipps was selected by Governor Terry Branstad to review an administrative law judge’s recommendation that WellCare be dropped over allegations that it didn’t properly disclose information about fraud or mismanagement during its bid for a contract. WellCare officials have said they disagree with the judge’s ruling.

Phipps’ report upholds the state’s contracts with Amerigroup Iowa, AmeriHealth Caritas Iowa and UnitedHealthcare Plan of the River Valley. A spokesman for Branstad says the governor’s office is still reviewing the decision.