Governor, Medicaid privatization actually means fewer health care providers for Iowa kids

February 4, 2016

DES MOINES – Today Governor Branstad claimed that “Managed care means more doctors for Medicaid patients.”  However, when it comes to the 37,000 children who had been served by Iowa’s nationally praised Hawk-I health insurance program, new numbers from the Branstad Administration show those children will have access to far fewer health care providers under Medicaid privatization. (See DHS chart below)

Under Iowa’s Hawk-I program, nearly 34,000 health care providers had contracts with both of the companies chosen to administer the program.  Of those providers, only 2,130 have signed contracts with all three Medicaid managed care companies for Branstad’s new Medicaid plan, according to data from the Iowa Department of Human Services.

“It is infuriating that the Governor took a nationally recognized program for providing health care for Iowa children, and basically destroyed its network of health care providers,” explained Senator Janet Petersen, a member of the state Hawk-I Board.  “Under Governor Branstad’s Medicaid privatization mess, it will be more difficult for families find medical care for their kids. When health care is available, it will be less comprehensive.”

For example, children assigned to the AmeriHealth managed care organization will have an especially difficult time keeping their current providers or finding any local provider.  Amerihealth has signed contracts with less than 15 percent of the health care providers who had accepted Hawk-I patients.

Hawk-i was Iowa’s nationally praised children’s health insurance program.  In 2015, it provided health insurance for more than 37,000 children.

How many former Hawk-I health care providers have
signed with Medicaid privatization managed care companies?