UPDATE: AmeriHealth releases statement in response to 400 layoff - KWWL - Eastern Iowa Breaking News, Weather, Closings

UPDATE: AmeriHealth releases statement in response to 400 layoffs

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(KWWL) -

According to the Iowa Workforce Development log Amerihealth Cartitas Iowa plans to layoff 400 people by December 31st. 

The announcement came Tuesday, the same day the Managed Care Organization (MCO) announced they would be pulling out of Iowa according to KWWL sister station WHO-TV in Des Moines. 

Amerihealth Cartitas has locations in Des Moines and Cedar Rapids. 

They are one of the three MCO's in the state including Amerigroup Iowa, Inc. and UnitedHealthcare Plan of the River Valley, Inc. 

KWWL spoke with a media representative for Amerihealth Cartitas this morning, they did not confirm or deny anything over the phone. 

WHO-TV reports the company had been complaining the privatized Medicaid program was costing them millions of dollars. 

The Department of Human Services is looking for a replacement for Amerihealth Cartitas to be the third MCO for Iowans. 

Below is AmeriHealth Caritas statement: 

“We are committed to supporting our colleagues during this transition. All of us are extremely proud of our Iowa colleagues and all they do to make Iowa a healthier state. There are a variety of services that will be available, including  salary and benefits continuation and outplacement services. Additionally, we are working closely with Iowa Workforce Development to explore additional services.
“The total number of employees impacted is not yet determined as other opportunities may exist in our national organization. Our focus is on working collaboratively with the state of Iowa in providing a seamless transition for our members and supporting our associates.”
For Background Purposes Only: Federal law requires our company to notify employees 60 days in advance of a plant close or a mass layoff." - Joshua Brett, Manager, Regional Media Relations 
 

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