Medicaid Insurers’ Contracts on the Line in Tight Governor’s Race

The Democratic candidate for governor says he would make Iowa the second state to drop private Medicaid management companies, which he calls “a disaster.”

By: Tony Leys

Outlets: KFF Health News

Published: July 30, 2026

Words: 1,494

Last Updated: 3 days, 17 hours ago

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One of America’s most competitive gubernatorial races could settle a heated argument over whether private insurance companies should run Medicaid.

The race is in Iowa, whose Medicaid program has been plagued with controversy since 2016, when the state hired national insurance companies to manage billions of dollars’ worth of benefits.

That shift was made by then-Gov. Terry Branstad, a Republican. With his executive order, Iowa joined most other states in privatizing the management of Medicaid, …

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