Medicaid management firm settles Mercy Health dispute

Des Moines, Iowa (AP) – A contract dispute settlement means the more than 220,000 Iowans covered by the Medicaid managed care company AmeriHealth Caritas can continue to receive coverage for treatment by Mercy Health Network.

The companies announced the settlement Monday but didn’t provide details.

The Mercy network, which includes hospitals in 13 cities, had been wrangling with AmeriHealth over new contract terms. AmeriHealth had said the Mercy system no longer would be an AmeriHealth network provider if a deal weren’t struck by July 1. AmeriHealth is one of three companies running Iowa’s $4 billion Medicaid program.

Mercy leaders had said AmeriHealth was trying to cut rates in the middle of a contract. AmeriHealth officials said it was seeking to establish a sustainable Medicaid program.

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