Governor Kim Reynolds says a temporary tax hike on H-M-Os and the companies that manage Iowa’s Medicaid program is a last resort to dealing with red ink in the Medicaid budget. The bill raising the premium tax from under one percent to three-and-a-half percent for nine months has cleared the legislature. It will qualify Iowa for matching federal funds and Reynolds will sign the bill into law soon.
“The fact of the matter is it helps cover the Medicaid shortfall,” Reynolds said. “From COVID, we’ve been watching it all along. The bill has come due.” Reynolds says every state is seeing Medicaid costs rise, partly due to an increase in severe illnesses.
