DES MOINES, Iowa (AP) — Iowa officials say they’re giving a $344 million raise to two companies that manage the state’s Medicaid program. The state’s share is nearly $103 million, or a 7.5 percent increase. The federal government will cover the remainder.
The Iowa Department of Human Services, which oversees the health care program for 680,000 poor and disabled Iowans, said Friday the additional funding is “a manageable increase.”

Medicaid Director Michael Randol says the new contracts improve oversight of services provided by UnitedHealthcare and Amerigroup. Senate Democratic Leader Janet Petersen calls the increased cost a gut punch to Iowa taxpayers.

Former Republican Gov. Terry Branstad privatized the program in 2016 and Gov. Kim Reynolds supports it despite questions about whether it is saving the promised millions of dollars and complaints that services have deteriorated.