CEO DATELINE - Iowa greenlights association health plan expansion
CEO DATELINE - Iowa greenlights association health plan expansion
- April 3, 2018 |
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Walt Williams
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Iowa has become the third Republican-controlled state to approve expanding association health plans as a way for businesses to circumvent certain Affordable Care Act coverage requirements.
Iowa Gov. Kim Reynolds signed legislation Monday allowing trade associations and agricultural organizations to offer health plans. Iowa's individual insurance market has collapsed in recent months after nearly every insurer pulled out, citing high costs. Republican critics say the pullouts resulted from ACA being a flawed law. The law's supporters and the insurance companies themselves say much of the blame lays on the GOP's refusal to guarantee subsidies to offset the cost of providing insurance to low-income people.
Reynolds, a Republican, blamed ACA for her state's insurance woes.
"Before the Affordable Care Act took effect, Iowa had a healthy individual insurance market," Reynolds said in a statement. "There were nine carriers, with good participation and reasonable premiums. Today, the state's market is in collapse. Premiums went up 57 percent last year, forcing many Iowans to choose between going broke or going without insurance. As a result, 26,000 Iowans left the insurance market."
Republicans have been unable to repeal ACA in its entirety so party leaders have instead taken steps to chip away at the law. Last year President Donald Trump signed an executive order instructing the Department of Labor to develop new rules that would expand the use of association health plans exempt from some ACA coverage requirements.
More recently, the Republican-controlled states of Wisconsin and Idaho have both proposed expanding the use of association health plans. Idaho went further than other states in allowing plans exempted from a host of ACA regulations. However, the Centers for Medicare and Medicaid Services informed state leaders in March that their proposal violated federal law and insurers would be hit with significant penalties if they participate. http://bit.ly/2GuWqMB
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