Newstrack: Iowa City family still waiting for Amerigroup to pay bills

Jan. 22--Background

In May 2016, Susan Rew and her husband took advantage of a Medicaid program that would pay for home modifications for their disabled adult son, Corey, to live independently and safely in his new home. But after many months of unanswered phone calls and emails, the private Medicaid insurer Corey was enrolled with had yet to pay the contractors for their work.

What's happened since

Nearly nine months after Corey Rew moved into his Iowa City home, the $5,000 in bills for modifications to his bathroom and laundry room still remain unpaid.

His mother, Susan, said she calls the insurer -- Amerigroup Iowa -- once every week to get an update and see if there's been a change.

There hasn't been -- though she is hopeful a resolution is close.

Iowa handed its Medicaid program with more than 600,000 enrollees to three private insurers -- Amerigroup, AmeriHealth Caritas Iowa and UnitedHealthcare -- on April 1, 2016.

Corey's case manager, through Johnson County, helped get the necessary approvals after the April 1 transition to get modifications done to his home. The Rews applied for a Medicaid program that helps pay for home and vehicle modifications to cover the costs.

That work was done by June, Susan said, and Corey -- who is on an intellectual disability waiver and also has some physical disabilities -- moved in.

But then the Rews started receiving bills. Susan didn't think anything about it at first, she said, assuming Amerigroup eventually would pay the costs.

It didn't. The contractors' patience started wearing out and by October, Susan Rew said she worried the family would be contacted by creditors.

In November, Amerigroup sent the companies contracts to complete -- though Susan said one was accidentally sent to Virginia Beach.

Now that the contracts are completed, she said that when she calls the insurer weekly she is typically told the same thing -- the checks "are in process."

She hopes the bills will be paid soon, but worries that other families hoping to use this program will run into issues finding electricians, plumbers or carpet companies willing to do the job.

"That's a network," she said. "I wonder if the word will get out, 'Don't do Medicaid work, you won't ever get paid.'"

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