DES MOINES, Iowa (AP) – Lawmakers say a delay in privatization of Iowa’s Medicaid program means that most of the 37,000 children enrolled in a special health care program must transition to a new insurance carrier by the new year. The Des Moines Register reports that Iowa terminated its contract with two companies that managed the hawk-i program, anticipating that the state’s Medicaid program would be almost completely privatized by Jan. 1.

Last week, the federal government rejected that target date, saying Iowa was not ready for the transition. Iowa asked UnitedHealthcare and Wellmark to extend their contracts, but Wellmark declined. Iowa Medicaid Director Mikki Stier said Monday about 75 percent of the program’s children are currently insured through Wellmark.

Board members for hawk-i said they would help Iowa persuade Wellmark to extend its contract.