WellCare of Iowa asks DHS to maintain status quo

WellCare of Iowa isn't ready to give up on its contract to manage Iowa's Medicaid population.

Late Monday, the company requested the Iowa Department of Human Services to 'maintain the status quo” while the managed-care organization asks a Polk County district judge to review a state arbiter's decision to toss out its contract.

Janet Phipps, director of the state Department of Administrative Services, said Friday that WellCare's bid should be disqualified and the subsequent contract terminated. Phipps said the company failed to disclose a corporate integrity agreement that would have included information on $137.5 million in fines to resolves false claims litigation.

Gov. Terry Branstad announced plans earlier this year to transition Iowa's $5 billion Medicaid system to four out-of-state, private care companies - Amerigroup Iowa, AmeriHealth Caritas Iowa, UnitedHealthcare Plan of the River Valley and WellCare.

Meanwhile, the state said Monday those who tentatively were assigned to WellCare would be reassigned in the coming weeks to the three remaining managed-care organizations - a move WellCare wants to stop.

The Tampa, Fla.-based company said in its request for stay that 'if the disqualification of WellCare is not stayed, WellCare will suffer irreparable injury because it will begin losing employees, will not be able to further participate in readiness reviews by DHS and the federal Centers for Medicare and Medicaid Services, and will lose members assigned to it.”

In its filing, WellCare states that it has invested more than $11.2 million in the state, finalized contracts with more than 14,600 health care providers and hired 178 people in order to be ready for the March 1 start date.

WellCare also pointed out that about 125,000 Iowans have been assigned to receive managed-care services from the company. If those individuals are reassigned, and WellCare's disqualification eventually is overturned, then they could be assigned back to WellCare.

The company added that being assigned and reassigned three times 'will create confusion and anxiety.”

WellCare maintains that it 'fully disclosed and described in great detail” the settlement payment and the corporate integrity agreement in its initial response in the financial disclosures and in the clarifying response the company submitted to the evaluation committee.

'Because there is no basis in law to disqualify WellCare under these facts, WellCare is likely to prevail before the district court,” is said in the filing.

The company said it plans to file an injunction in the Polk County District Court as soon as possible.