Des Moines, Iowa (RI) — The Iowa House has passed a bill to temporarily raise the premium tax on private companies that offer HMOs to Iowans as well as the three companies that manage Iowa’s Medicaid program. That nine-month-long maneuver would send $124 million in federal matching funds to the State of Iowa to cover a deficit in Medicaid. Representative Shannon Lundgren a Republican from Peosta, says it’s responsible budgeting and it’s being done in many other states.
Representative Austin Baeth, a Democrat from Des Moines, says this tax will cost Iowans who buy insurance.
Lundgren says when the state REDUCED the premium tax a few years ago, Wellmark raised the cost of its insurance premiums, and she says it will be a business decision if the company passes this tax hike on to its customers.
The bill passed with the support of 53 House Republicans. Ten other Republicans joined 30 Democrats in opposing it. Governor Reynolds says Iowa faces a March 31st federal deadline for making this change, and the bill has to clear the Senate next before she can sign it into law.
KIWA Staff Photo
