Read the full stored bill text
House
File
2738
-
Introduced
HOUSE
FILE
2738
BY
McBURNEY
,
BAGNIEWSKI
,
B.
MEYER
,
WICHTENDAHL
,
KURTH
,
BROWN-POWERS
,
KONFRST
,
ZABNER
,
BAETH
,
WILSON
,
RAMIREZ
,
CROKEN
,
R.
JOHNSON
,
KRESSIG
,
WESSEL-KROESCHELL
,
and
JACOBY
A
BILL
FOR
An
Act
establishing
a
state-based
health
insurance
subsidy,
and
1
making
an
appropriation.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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2738
Section
1.
NEW
SECTION
.
135.196
Iowa
benefit
exchange
fund
1
——
enhanced
premium
credits
——
appropriation.
2
1.
As
used
in
this
section,
“enhanced
premium
tax
credit”
3
means
the
advanced
premium
tax
credit
under
26
U.S.C.
4
§36B(3)(A).
5
2.
The
department
and
the
department
of
insurance
and
6
financial
services
shall
cooperate
and
develop
an
internet
7
site
to
be
located
on
the
internet
site
of
the
department
to
8
effectuate
this
section.
9
3.
An
Iowa
benefit
exchange
fund
is
created
in
the
state
10
treasury
under
the
control
of
the
department.
Moneys
in
the
11
fund
are
to
be
used
for
the
sole
purpose
of
providing
subsidies
12
to
persons
whose
applications
have
been
approved
pursuant
to
13
this
section.
Moneys
in
the
fund
are
not
subject
to
section
14
8.33.
Notwithstanding
section
12C.7,
subsection
2,
interest
or
15
earnings
on
moneys
in
the
fund
shall
be
credited
to
the
fund.
16
4.
The
purpose
of
the
fund
is
to
provide
funding
for
the
17
establishment
of
a
state-based
health
insurance
subsidy
to
18
mitigate
the
impact
of
the
reduction
in
the
enhanced
federal
19
advanced
premium
tax
credits
after
the
2025
tax
year.
20
5.
For
the
fiscal
year
beginning
July
1,
2026,
and
ending
21
June
30,
2027,
there
is
appropriated
from
the
general
fund
of
22
the
state
to
the
department
to
be
credited
to
the
Iowa
benefit
23
exchange
fund,
an
amount
sufficient
to
implement
this
section
24
until
such
time
that
the
enhanced
federal
advanced
premium
25
tax
credits
are
restored
to
a
level
equaling
or
exceeding
the
26
amount
of
the
enhanced
premium
tax
credit
available
to
persons
27
during
the
2025
tax
year.
28
6.
Beginning
July
1,
2026,
in
order
to
qualify
for
a
subsidy
29
to
mitigate
the
impact
of
the
reduction
in
enhanced
federal
30
advanced
premium
tax
credits,
a
person
who
is
a
resident
may
31
submit
an
application
to
the
department
in
a
manner
specified
32
by
the
department.
The
application
shall
include
identical
33
information
submitted
by
a
person
as
if
applying
for
health
34
insurance
coverage
under
the
federal
Patient
Protection
and
35
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2738
Affordable
Care
Act,
Pub.
L.
No.
111-148,
including
personal
1
information,
household
income,
immigration
status,
and
any
2
current
or
available
health
insurance
coverage.
3
7.
a.
For
the
tax
year
beginning
on
or
after
January
1,
4
2026,
but
before
January
1,
2027,
and
upon
approval
of
the
5
application
by
the
department,
an
amount
equal
to
the
enhanced
6
premium
tax
credit
the
person
would
have
received
as
if
the
7
enhanced
premium
tax
credit
did
not
expire
shall
be
provided
to
8
the
person
to
offset
the
cost
of
the
health
insurance
coverage.
9
b.
The
amount
provided
shall
be
based
upon
the
calculation
10
for
the
enhanced
premium
tax
credits
during
the
2025
tax
year.
11
c.
The
amount
provided
may
be
retroactive
to
January
1,
12
2026,
if
the
person
qualified
for
such
credits,
or
to
the
13
date
the
person
would
have
qualified
for
enhanced
premium
tax
14
credits
in
2026,
whichever
is
earlier.
15
8.
The
department
shall
adopt
rules
pursuant
to
chapter
17A
16
to
administer
this
section.
17
EXPLANATION
18
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
19
the
explanation’s
substance
by
the
members
of
the
general
assembly.
20
This
bill
establishes
a
state-based
health
insurance
subsidy
21
to
mitigate
the
impact
of
the
reduction
in
federal
health
22
insurance
subsidies.
23
The
federal
enhanced
premium
tax
credit
under
26
U.S.C.
24
§36B(3)(A)
(federal
credit)
expired
on
January
1,
2026.
The
25
federal
credit
was
an
expansion
of
the
subsidies
provided
under
26
the
federal
Patient
Protection
and
Affordable
Care
Act,
also
27
known
as
the
ACA.
28
For
the
2026
tax
year
only,
the
bill
replaces
the
expired
29
federal
credit
with
a
state
subsidy
of
equal
value
as
the
30
federal
credit
calculated
during
the
2025
tax
year.
31
The
bill
requires
the
department
of
health
and
human
32
services
(department)
and
the
department
of
insurance
and
33
financial
services
to
cooperate
and
develop
an
internet
site
to
34
be
located
on
the
internet
site
of
the
department
to
effectuate
35
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H.F.
2738
the
bill.
1
Beginning
July
1,
2026,
a
person
who
is
a
resident
of
this
2
state
may
submit
an
application
to
the
department
in
a
manner
3
specified
by
the
department.
The
application
shall
include
4
identical
information
submitted
by
a
person
as
if
applying
for
5
health
insurance
coverage
under
the
federal
Patient
Protection
6
and
Affordable
Care
Act,
Pub.
L.
No.
111-148.
7
Upon
approval
of
the
application
by
the
department,
an
8
amount
equal
to
the
enhanced
premium
tax
credit
the
person
9
would
have
received
as
if
the
enhanced
premium
tax
credit
did
10
not
expire
shall
be
provided
to
the
person
to
offset
the
cost
11
of
the
health
insurance
coverage.
The
amount
provided
may
be
12
retroactive
to
January
1,
2026,
if
the
person
qualified
for
13
such
credits,
or
to
the
date
the
person
would
have
qualified
14
for
enhanced
premium
tax
credits
in
tax
year
2026,
whichever
15
is
earlier.
16
The
bill
creates
an
Iowa
benefit
exchange
fund
(fund)
in
the
17
state
treasury
under
the
control
of
the
department
for
the
sole
18
purpose
of
providing
subsidies
to
persons
whose
applications
19
have
been
approved
pursuant
to
the
bill.
20
For
FY
2026-2027,
the
bill
appropriates
from
the
general
21
fund
of
the
state
an
amount
sufficient
to
implement
the
bill.
22
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