House panel votes to raise certain taxes, transfer money to offset Medicaid shortfall

By: Robin Opsahl

Outlets: Iowa Capital Dispatch

Published: March 17, 2026

Words: 960

Last Updated: 4 months, 2 weeks ago

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A bill advancing rapidly in the Iowa House would make a one-time tax increase on some health insurers and draw money from the Taxpayer Relief Fund to address the state’s Medicaid shortfall.

House File 2739 was passed by a House Appropriations subcommittee and the full committee Monday. It would increase premium taxes on health maintenance organizations (HMOs) retroactively from the current 0.925% rate to 3.5% between Jan. 1 and Sept. 30, 2026. The rate …

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