Iowa Medicaid bailout could cost US taxpayers $225M: 3 key notes

Iowa state officials agreed to bail out three private Medicaid managed-care companies through a risk-corridor agreement. The decision would cost the state approximately $10 million, but it could cost the federal government up to $225 million, The Des Moines Register reports.

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Here’s what you should know.

1. USA Today reports the federal money would come through the Affordable Care Act. Gov. Terry Branstad, R, opposed the ACA when first passed, but has since used ACA provided funds to help Iowa, The Register reports.

2. The agreements would help payers offset an estimated $450 million in losses.

3. Iowa privatized its Medicaid and Medicare programs in April 2016. The three companies that manage Iowa’s Medicaid programs complained of “catastrophic” losses in the state, which spurred the agreement.

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