Alternative Headline: Spencer Hospital nears Medicaid deals
[MM Curator Summary]: Spencer Hospital plans to sign contracts with all three private insurers managing Iowa’s Medicaid program, despite concerns about the rushed privatization process.
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Spencer Hospital anticipates it will reach contract agreements with all three of the private insurance companies selected by the state of Iowa to manage its Medicaid program.
During 2015 the state of Iowa initiated a process to transition from a state-run Medicaid program to a privately managed program. The program transition was initially scheduled for Jan. 1, but implementation has been tentatively delayed until March 1. Following a review process in December, federal officials announced the state was not sufficiently prepared for its planned January start date resulting in the implementation delay.
Spencer Hospital expects to sign contracts with Amerigroup Iowa Inc., AmeriHealth Caritas Iowa Inc. and UnitedHealthcare Plan of River Valley Inc. if negotiations continue to progress. Medicaid beneficiaries have until Feb. 17 to enroll with one of the private companies. If beneficiaries do not choose one of these managed care companies, they will be assigned to one by the state.
Spencer Hospital President Bill Bumgarner said the contracting process has been challenging due to the aggressive program transition schedule adopted by the state.
“The concerns of Medicaid beneficiaries, their families and healthcare providers regarding the state’s rush to implement the privatization plan have been widely reported,” Bumgarner said. “It’s unfortunate that the state chose not to approach such a major change with measured steps as other states have done. It’s resulted in a significant level of confusion for those involved with and impacted by the Medicaid program.”
Bumgarner said the hospital has expedited its contract review process as much as it reasonably could in an effort to provide Medicaid beneficiaries with the opportunity to make an informed decision about which managed care program to enroll with.
“We want to advise the public of our contracting status because we know people cannot make good decisions without information,” he explained. “These can be complicated decisions for the beneficiaries and their families, some of whom depend on a wide range of health care providers for their care. By pursuing contracts with all three companies approved by the state, we seek to offer our patients all options.”
Bumgarner said Spencer Hospital will join healthcare providers throughout the state to support patients during the transition process despite deep concerns about the long-term implications of privatizing the Medicaid program.
“Spencer Hospital’s mission is about putting patients first,” he said. “The state has a right to manage the Medicaid program in the way it chooses as long as it complies with federal and state regulations. However, the healthcare community believes the evidence is clear that outsourcing the Medicaid program is not in the best interest of patients nor is it sound health policy.”
He continued, “There are better and more progressive alternatives to enhance care outcomes for Medicaid patients while also seeking cost efficiency. That would require significant collaboration between the State of Iowa and its healthcare providers. It’s a process we have and continue to be willing to pursue. For whatever reason, the state chose to go a different way.”
Bumgarner said the hospital would make a public announcement when Medicaid contracting decisions were final.
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