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Iowa Senate Bill SF2464
Iowa 2025-2026 Regular Session
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Iowa 2025-2026 Regular Session

Iowa Senate Bill SF2464

Introduced
3/4/26  

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, and retroactive applicability provisions.(Formerly SSB 3182.)

Impact

The bill introduces a new tax structure, with rates defined for different periods within calendar year 2026 and beyond. The legislation will alter the existing ecosystem of HMO taxation, as it eliminates the previous premium tax, which was set to decrease gradually, and replaces it with a levied tax of 3.5 percent for the first three quarters of 2026, followed by a reduced rate of 0.95 percent for subsequent years. This change aims to streamline health care financing through HMOs and ensure that revenue generated is allocated effectively for public health initiatives.

Summary

Senate File 2464 is a legislative act aimed at modifying the financial framework governing health maintenance organizations (HMOs) and enhancing state financial support mechanisms. It specifically focuses on the taxation of HMOs by striking the existing tax on HMO premiums and instituting a new health care-related tax on their taxable funds as outlined in the newly introduced Code chapter 432B. This represents a significant shift in how HMOs will be taxed, potentially affecting their financial operations and revenue generation if approved.

Contention

Debate surrounding SF2464 may center on the implications of establishing a new behavior around taxing HMOs, particularly how these funds are used by the state. The proposed shifts could result in heated discussions about taxpayer impact, the sufficiency of the state’s budget regarding health care provisions, and the repercussions of altering HMOs’ financial liabilities. Moreover, the bill includes provisions for supplemental appropriations to the Department of Health and Human Services, emphasizing the need for continued financial support for medical assistance programs.

Supplemental

The bill also sets forth comprehensive measures regarding the transfers from the taxpayer relief fund to the state general fund, adjusting percentages based on the state's projected revenue and appropriations. It signifies a broad strategy to maintain fiscal responsibility while accommodating the challenges of funding state health services during the fiscal years 2025-2026. The retroactive applicability to January 1, 2026, for the new tax structure represents a forward-thinking approach, aimed at securing funding continuity for essential health services.

Latest IA SF2464 Activity

View All Events: IA 2025-2026 Regular Session SF2464

Companion Bills

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 HSB762

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, applicability, and retroactive applicability provisions.(See HF 2739.)

IA HF2739

Similar To 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 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 HSB762

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.)

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 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 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 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 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.)

IA SF651

A bill for an act relating to local government property taxes, financial authority, and budgets, modifying appropriations, and including effective date, applicability, and retroactive applicability provisions.(Formerly SSB 1227.)

Similar Bills

No similar bills found.