Governor Terry Branstad will expand the number of Medicaid recipients who are covered under private managed-care companies, Tony Leys reported for the January 21 Des Moines Register.

Details are scarce on how the plan would work, but Branstad projects it would save $51.3 million from January through June 2016, its first six months. […]

“Through better coordinated care in Medicaid, focused on improving outcomes, Iowa can better serve Medicaid patients and provide more predictability for Iowa taxpayers,” [Branstad spokesman Jimmy Centers] wrote in an email to the Register. “The growth of Medicaid spending in Iowa is unsustainable over the long-term and it limits Iowa’s ability to provide high-quality and stable health services to our most vulnerable residents as well as our ability to invest state taxpayer dollars in other key programs aimed at growing our state.” […]

Rep. Linda Miller, a Bettendorf Republican who serves on the [Human Resources] committee, said most of the savings would come from improved care, so Medicaid members wouldn’t need hospitalization or other expensive services as often. She said legislators want to make sure the shift won’t lead to cuts in services or in payment rates to medical providers.

Amy McCoy, a spokeswoman for the Iowa Department of Human Services, said the state and federal governments spend about $4.2 billion annually – including $1.5 billion of state money – on Iowa’s Medicaid program. That’s up 73 percent since 2003, she said.

If Branstad’s plan really would save $51.3 million each year (I am skeptical), that figure represents a little more than 1 percent of Medicaid’s total annual costs in Iowa, or about 3.4 percent of the state’s share of Medicaid costs.

Approximately 564,000 Iowans are now covered under the Medicaid program. It’s not clear how many of them would be shifted to private companies; the Department of Human Services is expected to release a plan in March. Magellan of Iowa has offered “a broad range of mental health and substance abuse services” to most Iowans on Medicaid since 1995. Meridian Health Plan has been providing coverage to some Medicaid recipients since 2012 “through a contract with the Iowa Department of Human Services.” Currently about 17,000 beneficiaries are covered through Meridian.

Leys quoted Iowa House Republican Dave Heaton as saying the governor can implement this change without legislative approval.

Any relevant comments are welcome in this thread.

P.S. – Who is old enough to remember when Republicans demonized the idea of “managed care” as evil interference between doctors and their patients?