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Iowa House Bill HSB762
Iowa 2025-2026 Regular Session
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Iowa 2025-2026 Regular Session

Iowa House Bill HSB762

Introduced
3/10/26  

Caption

A bill for an act relating to state finances by modifying the taxes imposed on health maintenance organizations, making transfers from the taxpayer relief fund, making and supplementing appropriations to the department of health and human services, and including effective date, contingent effective date, applicability, and retroactive applicability provisions.(See HF 2739.)

Impact

The changes introduced by HSB762 are expected to have substantial implications for the financial structure of HMOs operating in the state. By creating a more predictable tax rate on taxable funds, the bill aims to enhance fiscal stability for these organizations. Moreover, funds collected through this tax will be allocated to support health care initiatives and programs, potentially improving access and quality of care for Medicaid recipients. Critics argue that this change may lead to increased costs for health services depending on how HMOs adapt to the new tax structure.

Summary

House Study Bill 762 modifies the tax structure relevant to health maintenance organizations (HMOs) in the state, shifting from a premium tax regime to a health care-related tax. This bill establishes a new Code chapter specifically for the taxation of HMOs. It outlines that effective from January 1, 2026, HMOs will pay a health care-related tax of 3.5% on taxable funds in the first three quarters of the year, transitioning to a rate of 0.95% thereafter for subsequent years. This adjustment aims to streamline tax processes for HMOs which also play a significant role in administering Medicaid programs in Iowa.

Contention

Debate surrounding HSB762 centers on its potential impact on health care costs and availability. Supporters of the bill argue that the new tax structure will simplify compliance for HMOs and stabilize funding for health programs. They emphasize that the reduced tax rate is better for overall operational efficiency. However, opponents fear that the shift in taxation could lead to higher healthcare costs over time as HMOs pass on expenses to consumers. The bill also raises concerns regarding the timing of tax implementations and the adequacy of funding for health services amidst broader budget constraints.

Companion Bills

IA SF2464

Replaced by A bill for an act relating to state finances by modifying the taxes imposed on health maintenance organizations, making transfers from the taxpayer relief fund, making and supplementing appropriations to the department of health and human services, and including effective date, contingent effective date, and retroactive applicability provisions.(Formerly SSB 3182.)

IA SSB3182

Related A bill for an act relating to state finances by modifying the taxes imposed on health maintenance organizations, making transfers from the taxpayer relief fund, making and supplementing appropriations to the department of health and human services, and including effective date, contingent effective date, and retroactive applicability provisions.(See SF 2464.)

IA HF2739

Replaced by A bill for an act relating to state finances by modifying the taxes imposed on health maintenance organizations, making transfers from the taxpayer relief fund, making and supplementing appropriations to the department of health and human services, and including effective date, contingent effective date, and retroactive applicability provisions. (Formerly HSB 762.) Contingent effective date, effective 03/25/2026, 07/01/2026. Applicability date: 01/01/2026.

Previously Filed As

IA SF2464

A bill for an act relating to state finances by modifying the taxes imposed on health maintenance organizations, making transfers from the taxpayer relief fund, making and supplementing appropriations to the department of health and human services, and including effective date, contingent effective date, and retroactive applicability provisions.(Formerly SSB 3182.)

IA SSB3182

A bill for an act relating to state finances by modifying the taxes imposed on health maintenance organizations, making transfers from the taxpayer relief fund, making and supplementing appropriations to the department of health and human services, and including effective date, contingent effective date, and retroactive applicability provisions.(See SF 2464.)

IA HF2739

A bill for an act relating to state finances by modifying the taxes imposed on health maintenance organizations, making transfers from the taxpayer relief fund, making and supplementing appropriations to the department of health and human services, and including effective date, contingent effective date, and retroactive applicability provisions. (Formerly HSB 762.) Contingent effective date, effective 03/25/2026, 07/01/2026. Applicability date: 01/01/2026.

IA HF1014

A bill for an act relating to matters under the purview of the department of health and human services, including administrative services organizations, child foster care, child and dependent adult abuse, internal audit and examination information, and the region incentive fund in the mental health and disability services regional service fund, health maintenance organization's premium tax, and making appropriations and including effective date and retroactive applicability provisions.(Formerly HF 757, HSB 215; See HF 1042.)

IA SF641

A bill for an act relating to matters under the purview of the department of health and human services, including administrative services organizations, child foster care, child and dependent adult abuse, internal audit and examination information, and the region incentive fund in the mental health and disability services regional service fund, health maintenance organization's premium tax, and making appropriations and including effective date and retroactive applicability provisions. (Formerly SF 620, SF 582, SSB 1171.) Effective date: 06/06/2025, 07/01/2025. Applicability date: 01/01/2024, 07/01/2024.

IA HF757

A bill for an act relating to matters under the purview of the department of health and human services, including administrative services organizations, child foster care, child and dependent adult abuse, internal audit and examination information, and the region incentive fund in the mental health and disability services regional service fund, health maintenance organization's premium tax, and making appropriations and including effective date and retroactive applicability provisions.(Formerly HSB 215; See HF 1014, HF 1042.)

IA HSB784

A bill for an act relating to state government and finances, including by making corrections, and including effective date and retroactive applicability provisions.(See HF 2800.)

IA SF582

A bill for an act relating to matters under the purview of the department of health and human services, including administrative services organizations, child foster care, child and dependent adult abuse, internal audit and examination information, and the region incentive fund in the mental health and disability services regional service fund, health maintenance organization's premium tax, and making appropriations and including effective date and retroactive applicability provisions.(Formerly SSB 1171; See SF 620, SF 641.)

IA SF620

A bill for an act relating to matters under the purview of the department of health and human services, including administrative services organizations, child foster care, child and dependent adult abuse, internal audit and examination information, and the region incentive fund in the mental health and disability services regional service fund, health maintenance organization's premium tax, and making appropriations and including effective date and retroactive applicability provisions.(Formerly SF 582, SSB 1171; See SF 641.)

IA HF1042

A bill for an act relating to matters under the purview of the department of health and human services, including administrative services organizations, child foster care, child and dependent adult abuse, internal audit and examination information, and the region incentive fund in the mental health and disability services regional service fund, health maintenance organization's premium tax, and making appropriations and including effective date and retroactive applicability provisions.(Formerly HF 1014, HF 757, HSB 215.)

Similar Bills

No similar bills found.