MDwise to lay off 79 employees in departure from Indiana Medicaid program

Indianapolis-based insurer MDwise will exit Indiana's Medicaid program at the end of this month, laying off 79 workers in the process, according to an IndyStar report.

Of the 79 employees cut, 40 are care managers and 14 are nurses, according to the report. The layoffs will leave MDwise with approximately 400 workers.

MDwise said it is attempting to transfer affected employees to positions with two other insurers participating in the Medicaid program — Indianapolis-based Anthem and Managed Health Services, a managed care entity in Indiana.

MDwise decided to leave the state's Hoosier Care Connect program following an impasse with the Indiana Family and Social Services Administration regarding payment, company officials told the IndyStar. The insurer said the agency "would not provide the rates necessary for MDwise to continue participation" in the Medicaid program.

FSSA said in a statement to the IndyStar its rates "were adequate to appropriately serve members and to sustain the program." The agency also said CMS had approved the rates.

The exit will affect about 39,000 MDwise beneficiaries. Those individuals will be transitioned either to Anthem or MHS, which both provide coverage through Hoosier Care Connect.  

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