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(Des Moines, IA) -- Iowans may soon be paying more for their health insurance. A bill that increases taxes on health maintenance organizations, or HMOs, has been signed into law by Governor Kim Reynolds.
The new law more than triples the HMO tax rate through the end of September. The revenue generated by the tax increase is expected to help offset the state’s projected 90-million dollar plus Medicaid budget shortfall. Health insurers have said they will pass on the excess cost to their customers.