United Group Insurance

2 companies end fight to halt Iowa Medicaid privatization

News

February 17th, 2016 by Ric Hanson

DES MOINES, Iowa (AP) – A WellCare executive says the company has ended legal actions to regain its contract to manage Iowa’s Medicaid program. The contract was terminated by Iowa in December after WellCare was disqualified for unfair bidding practices, an allegation that WellCare denied. WellCare later joined a lawsuit that alleged the bidding was deeply flawed and should be reopened.

The Des Moines Register reports that in a ruling released Monday, Judge Robert Blink rejected WellCare’s arguments, as well as arguments from Meridian Health Plan that the bidding was flawed. Meridian’s Raymond Pitera and WellCare’s Blair Todt told the Register that their companies don’t plan any additional appeals.