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Judge recommends Iowa throw out 1of 4 Medicaid contracts

DES MOINES, Iowa (AP) — An administrative law judge has recommended Iowa throw out one of four contracts awarded to private companies set to take over the state's Medicaid program in January.

Judge Christie Scase says in a ruling Wednesday that Iowa should reverse its contract with Florida-based WellCare. The Des Moines Register reports the ruling is considered a "proposed decision." It's unclear how it will affect plans to let WellCare and three other companies run Iowa's $4.2 billion Medicaid program for the poor and disabled.

The ruling says WellCare should have disclosed information early to state officials about fraud or mismanagement involving former executives. WellCare officials said in a statement it will challenge the ruling.

Governor Terry Branstad said in a statement Wednesday his office is working to ensure things remain on schedule.

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