January 06, 2018 09:21 PM
DES MOINES, Iowa (AP) - A new report says Iowa's controversial shift to privately managed Medicaid will save the state 80 percent less money this year than originally predicted.
The Des Moines Register reported Saturday that a quarterly report prepared by Iowa Department of Human Services staff members says the state now stands to save $47.1 million this fiscal year by having private companies manage the $4 billion program.
Former Gov. Terry Branstad, who ordered the privatization that began in 2016, had declared the move would save the state $232 million in fiscal year 2018.
A spokeswoman for Gov. Kim Reynolds, a Republican who succeeded Branstad and supports the shift to privately run Medicaid, says Reynolds' new Medicaid director believes his staff miscalculated the 2018 savings estimate.
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Created: January 06, 2018 09:21 PM
(Copyright 2018 by The Associated Press. All Rights Reserved.)