A Florida company that won a state contract to provide transportation services to Medicaid recipients says it will open a call center in Iowa that will employ 100 people.

TMS Management Group, a transportation broker based in Clearwater, Fla., won a three-year state contract to arrange nonemergency transportation for Medicaid recipients in Iowa.Now, the state human services agency reimburses transportation costs for about 300,000 Medicaid enrollees who are eligible.TMS says it will open a call center in Des Moines to support similar operations in other Midwestern states.

"This is smart government in action," Gov. Chet Culver said. "We're saving Iowa tax money while improving nonemergency transportation for eligible Medicaid recipients."

Culver also said the move reduces some work for the Iowa Department of Human Services, which will have about 260 fewer field service workers by June 24 because of retirements and attrition.

Under the new agreement, TMS will set up transportation for Iowans needing medical services. TMS will provide the service for $10 million annually, about the same costs as the current system, the state said.

The overall cost to state taxpayers will be less, however, because the federal government has decided to reimburse Iowa about $1 million more each year for its costs, said Roger Munns, a DHS spokesman. The federal government has reclassified the service.

The state will transfer services to TMS beginning Oct. 1.

Medicaid recipients will receive notice of the change and how to set up service.

Source:http://www.desmoinesregister.com

Posted by: Kelty Stapleton - Americas' Correspondent