Contractor Finds $23M In Savings For Iowa Medicaid

IOWA CITY, Iowa (AP) — A contractor hired by the Iowa Medicaid program has helped save taxpayers more than $23 million in the first year of an initiative to recover and avoid improper costs.

Iowa Medicaid officials said Thursday the savings identified by OptumInsight of Eden Prairie, Minn. already exceed its three-year, $14 million contract to lead the program integrity initiative and the $20 million goal set for the first year.

About two-thirds of the savings come from analyzing paid claims and recovering improper payments. The contractor has employees at several major Iowa hospitals working to identify overpayments and duplicate payments for which Medicaid should be reimbursed.

Its reviews have also helped identify cases where providers claimed reimbursement for more expensive services than what were actually provided, or for services that were not medically necessary.

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