Gov. Kim Reynolds signs health insurance premium tax increase into law

By: Robin Opsahl

Outlets: Iowa Capital Dispatch

Published: March 26, 2026

Words: 534

Last Updated: 4 months, 1 week ago

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Gov. Kim Reynolds signed into law a tax increase on health maintenance organizations, or HMOs, which aims to fill the state’s Medicaid budget shortfall. Critics say the tax will increase health insurance costs for Iowans.

The governor signed House File 2739 into law Thursday, according to a news release. The law will retroactively raise the premium tax on HMOs, a type of Medicaid Advantage plan offered by private companies, from a rate of 0.925% …

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