Reports say Iowa Governor Terry Branstad is preparing to bring private Medicaid managed care companies in to run the Medicaid program. Savings are expected to be $51 million over six months.

Under Medicaid managed care, which conservative reformers want in North Carolina, insurance companies run Medicaid instead of government bureaucrats. The companies keep a portion of savings and are responsible for cost overruns .

North Carolina used to have a successful Medicaid managed care model before it was killed and the government bureaucracy and medical industry providers who make money off Medicaid took full control.

Senate reformers have passed a plan allowing insurance companies to compete with doctors and hospitals to manage Medicaid. The House doesn’t want providers to face that competition. Let’s watch Iowa’s move helps Senators advance their compete to save option.