Judge recommends throwing out 1 of 4 Medicaid contracts

judge scalesAn administrative law judge has recommended that Iowa throw out one of the four contracts awarded to for-profit companies that are in line to manage Iowa’s Medicaid program.

The ruling calls for the state to reverse the contract awarded to WellCare, a company that has faced millions of dollars in fines for fraud or mismanagement in other states and last year saw three former executives sentenced to prison for fraud convictions.

The ruling was released after 4:30 p.m. Wednesday. It was not immediately clear how the ruling will affect a plan to launch the largest privatization effort in state history. The annual $4.2 billion Medicaid program provides health coverage to 560,000 poor and disabled Iowans.

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