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How Did All Iowa Lawmakers Vote on Private Health Insurance Tax Hike?
The tax hike aims to cover a $90.6 million Medicaid deficit and enable federal funding access by raising HMO premium tax from 0.925% to 3.5%, then reducing it in late 2026.
- On Tuesday, the Iowa Senate passed legislation increasing the premium tax rate on HMOs from 0.925% to 3.5%, sending the bill to Gov Kim Reynolds for approval.
- State leaders face a March 31 deadline to meet federal requirements for drawing down funding while addressing a projected $90.6 million deficit in Iowa Medicaid for Fiscal Year 2026.
- The legislation stipulates that $89 million from the Iowa Department general fund will be transferred to Health and Human Services to bolster the state's Medicaid program.
- Wellmark Inc lobbyist Scott Sundstrom warned lawmakers the tax increase will result in a $500 hike in health insurance costs for a family of four, a concern Senate Democrats echoed during Tuesday's debate.
- To offset revenue loss from tax cuts made through the "One Big Beautiful Bill" act, the legislation transfers almost $350 million from the Taxpayer Relief Fund.
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12 Articles
Senate sends governor HMO tax hike, to get federal matching funds
The companies that manage Iowa’s Medicaid program and private companies that offer HMOs to Iowans will soon pay a higher state premium tax for nine months — and it means Iowa qualifies for more federal funding for Medicaid patients. Senator Mark Costello, a Republican from Imogene, said it’ll bring in an additional $355 million in […]
Marietta Daily Journal+4 Reposted by 4 other sources
Iowa Senate sends health insurer tax increase to governor’s desk
A bill seeking to address Iowa Medicaid’s budget shortfall through a retroactive tax increase on health maintenance organizations for the first nine months of 2026 has made it to Gov. Kim Reynolds’ desk as it passed the Iowa Senate Tuesday.…
·Georgia, United States
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Total News Sources12
Leaning Left3Leaning Right1Center5Last UpdatedBias Distribution56% Center
Bias Distribution
- 56% of the sources are Center
56% Center
L 33%
C 56%
11%
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