Iowa Changes Health Insurance Choices

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By Becky Ogann

Story Created: Oct 21, 2008 at 9:36 AM CST

Story Updated: Oct 21, 2008 at 9:36 AM CST

DES MOINES (AP) - State workers in Iowa will have one choice, not two, when it comes to selecting health insurance carriers.

The Executive Council, which consists of five state leaders, has approved a proposal to eliminate United HealthCare and keep Wellmark. Monday's vote was 3-2.

Under the plan, employees beginning Jan. 1 won't be able to chose plans offered by United HealthCare, and will have to select those offered by Wellmark.

Supporters say the change will save the state as much of $9.5 million in 2009 and possibly that much in 2010.

Opponents say thousands of workers will be left with fewer options. They also cast doubt on the savings projections, saying Wellmark could increase rates in the last year of the two-year agreement.

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