AmeriHealth Caritas, a unit of Philadelphia-based Independence Health Group, is quitting the Iowa managed Medicare market at the end of this month, "after months of negotiations yielded no agreement on contract rates and terms," the company said.
AmeriHealth Caritas, which said it will work with Iowa to transfer members by the end of this month, had the largest number of Medicaid enrollees in that state, with 213,000, ahead of Amerigroup and UnitedHealthcare, according to a report in the Quad City Times of Davenport, Iowa.
Independence Health Group owns 61.3 percent of AmeriHealth Caritas, which operates Keystone First in the Philadelphia area. The remainder is owned by Blue Cross Blue Shield of Michigan, which reported that AmeriHealth Caritas had $9.1 billion in revenue in 2016, up from $6.5 billion the year before. The business' net income fell to $72 million in 2016, from $93 million in 2015.