DES MOINES – Iowa Governor Kim Reynolds announced late Friday that she is ending negotiations with UnitedHealthcare to provide health insurance under the state’s managed care system.
Reynolds issued the following statement this afternoon.
“Today I ended negotiations between the State of Iowa and UnitedHealthcare because of terms that I believed to be unreasonable and unsustainable.
“From the day I was sworn in as Governor I have been committed to ensuring a sustainable managed care program that protects patients, supports providers, and holds the insurance companies accountable.
“We have continued to work in good faith, along with the legislature to make improvements to the managed care system, including a substantial increase to funding this past year.
“Unfortunately, UnitedHealthcare continued to make additional demands that I found to be unacceptable, including a provision that would remove pay for performance measures that would hold them accountable.
“I want to assure Iowans that the state will work closely with UnitedHealthcare over the next several months to minimize disruption and ensure a smooth transition to the two other managed care companies.”