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State official provides no reason for tripled estimate of savings in privatized Medicaid

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June 14th, 2018 by Ric Hanson

The director of Iowa’s Medicaid program says the state will save about 140-million dollars in the current year because patient care is being managed by private companies, but Mike Randol is not explaining why that estimate has tripled since he became Medicaid director in January.  “I think it’s important to understand that regardless of the methodology, that there are savings,” Randol said.

Randol made his comments yesterday (Wednesday) in a verbal report to the state board appointed by the governor to oversee the agency. Randol then left the room and did not speak with reporters seeking details about how his savings estimate was developed. Senator Pam Jochum, a Democrat from Dubuque, says Randol didn’t address how patients and health care providers have been affected by Medicaid privatization either. “The director’s analysis or presentation to the council was incomplete and I really question the accuracy of the numbers that he provided,” Jochum said.

Last week, Republican State Auditor Mary Mosiman announced she will review the agency’s calculations. Fred Hubbell, the Democratic candidate for governor, said yesterday (Wednesday) that the lack of transparency about the finances of the state-run Medicaid program is “baffling and completely unacceptable.”

(Radio Iowa)