- On Wednesday, the Iowa Department of Health and Human Services announced its intention to award new managed care contracts in the state for units held by Elevance Health ( ELV ) and Molina Healthcare ( NYSE: MOH ).
- Accordingly, ELV's Amerigroup Iowa, which already has a Medicaid contract in the state will join newcomer MOH's Molina Healthcare of Iowa to manage these four-year contracts from July 01.
- "The news appears positive for Molina, which continued its market share grab, following last week's California win," Oppenheimer wrote in a research note.
- Iowa Total Care, owned by Centene ( CNC ), holds a managed care contract with the state that lasts through 2025.
- Last week, California announced its decision to award Medicaid contracts in the state to ELV, MOH, and CNC.
- However, Wells Fargo downgraded CNC in reaction, noting that the company lost the "crown jewel of the CA Medicaid program (Los Angeles County)" to MOH.
For further details see:
Elevance, Molina nab Medicaid contracts in Iowa