Iowa HHS announces intent to award new contract with Iowa Total Care

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The Iowa Department of Health and Human Services has announced its intent to award a contract to Iowa Total Care, a subsidiary of the Medicaid managed-care company Centene.

The state department this week announced its intent to award a Managed Care Organization (MCO) contract to Iowa Total Care that will begin July 1, 2025, with no change in operations. The new contract is set for four years, with a possible two-year extension.

The current contract with the organization is set to expire in 2025, after having began July 1, 2019. According to a Centene news release, Iowa Total Care plans to continue to provide care for 218,600 Medicaid, Iowa Health and Wellness Plan and Hawki members across the state’s 99 counties, with a focus on expanding home and community-based services.

“Since 2019, Iowa Total Care has provided Iowans with local and personalized care,” Sarah London, CEO of Centene said in a Wednesday statement. “We look forward to expanding our partnership with HHS as Iowa Total Care puts the health of Iowans at the center of all it does – investing in programs and partnerships that reduce barriers to care and improve health and well-being.”

Centene paid Iowa $44.4 million in 2022 to settle claims that it defrauded the state’s Medicaid system by Iowa Total Care overbilling taxpayers for prescription drugs through transactions handled by Envolve, which is also owned by Centene.

Iowa Total Care is one of three health insurance companies companies to contract with the state to provide managed care services for the state’s $7 billion program. In 2022, Amerigroup Iowa and Molina Healthcare of Iowa were awarded MCO contracts that began July 1, 2023, taking over after AmeriHealth Caritas withdrew from its Iowa contract in 2017 and UnitedHealthcare in 2019. The companies cited major financial losses due to their MCO contracts with Iowa, while program members said they saw cuts to medical services following the 2016 move to a privatized Medicaid system.

Department officials said in a news release that Medicaid members will not see any changes to their benefits under their current plan due to the contract award. Iowa HHS director Kelly Garcia said  the state remains committed to “providing access to quality health care” through the program, and  that Iowa Total Care has shown it has advanced in its provision and standards for care during its time serving as an MCO provider for the state.

“Iowa Total Care has demonstrated a commitment to continuous quality improvement and innovation — making them a valued partner for Iowa Medicaid,” Garcia said in a statement. “We are pleased to award Iowa Total Care with this contract as they continue to meet the needs of Iowans and deliver essential medical services.”