Managed care health plan AmeriHealth Caritas Iowa will leave the state's Medicaid program at the end of this month, according to a Quad-City Times report.
AmeriHealth Caritas announced its departure from Iowa's Medicaid program Oct. 31 after "months of negotiations yielded no agreement on contract rates and terms," the report states. The company will lay off 400 employees by the end of this year as a result of the exit.
AmeriHealth is one of three private payers managing Iowa's Medicaid beneficiaries. AmeriHealth, Amerigroup Iowa and UnitedHealthcare of the River Valley all posted significant financial losses managing the program during its first year, which began in spring 2016. AmeriHealth posted the largest loss at roughly $300 million, followed by Amerigroup at $133 million and UnitedHealthcare at more than $100 million.
The Iowa Department of Human Services said it posted a request for proposal seeking a different insurer to replace AmeriHealth, Quad-City Times reports.
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