Health insurance to change for some low-income Iowans after insurer leaves state program

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DES MOINES, Iowa — One of two health insurers providing coverage to low-income Iowa residents through a state program is withdrawing its services.

The Iowa Department of Human Services announced Friday that CoOportunity Health will soon no longer be an insurance option for those enrolled the Iowa Health and Wellness Program, the modified Medicaid expansion offered as part of President Barack Obama's health care overhaul.

Under the federally funded program, some people are enrolled in a state-run health plan and others get premiums covered for private insurance. About 112,000 people are in the program, with roughly 26,000 on private insurance.

CoOportunity covered 9,700 people. State officials say they will now be covered by the state-run health plan. CoOportunity spokeswoman Leigh McGivern says it was too costly for the insurer to continue coverage.

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