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HF 716

A bill for an act relating to health care coverage of certain nonstate public employees and officials under the state health insurance plan, and including effective date provisions.

2025-2026 Regular Session Introduced by Jason Gearhart

The bill requires nonstate public employers and elected officials to enroll in the state employee health plan, with funding via a new trust and enforcement on nonpaying entities.

Introduced, referred to Commerce.
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Bill Summary · HF 716

HF 716 — Summary

Overview

HF 716 is a proposed Iowa bill introduced on March 3, 2025, and referred to the Commerce committee. The primary sponsor is Rep. Gearhart. The bill would require nonstate public employers and their elected officials to participate in the state health insurance plan (the same plan used by state employees) and establishes a funding mechanism through the Iowa health care coverage partnership program trust fund. The bill takes effect on July 1, 2026.

Purpose and intent

  • Align health care coverage for nonstate public employees and their elected officials with the state employee health insurance plan.
  • Create a dedicated funding stream to support coverage for nonstate public employees and officials through a state-administered program.
  • Enable cost sharing between employers and covered individuals, subject to bargaining rights and obligations.

Key provisions

  • State plan parity

    • A state health plan must be the same as the plan for state employees, including the same premium structure paid by state employees.

  • Employer premium payments

    • Each nonstate public employer that participates in a state health or medical group insurance plan must pay monthly premium amounts for coverage to the Department of Administrative Services (DAS), plus administrative fees calculated on a per-month basis per employee or elected official.
    • Employers may require covered employees or elected officials to contribute a portion of the cost, consistent with collective bargaining obligations.

  • Funding and administration

    • Premium payments are deposited into the Iowa health care coverage partnership program trust fund and used to provide coverage to the covered individuals.
    • If monthly premium payments are not made, DAS may charge interest on the unpaid balance.

  • Nonstate public employer payments enforcement

    • If a nonstate public employer fails to pay premiums, DAS may direct the state treasurer to withhold grants, allocations, or appropriations payable to that employer until premiums are paid.

  • Definition of nonstate public employer

    • A “nonstate public employer” includes political subdivisions of the state such as counties, cities, community colleges, and school districts.

  • Reporting

    • DAS must submit an annual report to the Governor and the General Assembly detailing the health care coverage provided to nonstate public employees.

Affected entities

  • Nonstate public employers (counties, cities, community colleges, school districts, and other political subdivisions).
  • Covered individuals: nonstate public employees and elected officials who participate in the program.
  • Department of Administrative Services (DAS) as the administering agency.
  • State government funding mechanisms via the treasurer for enforcement purposes.

Procedural and timeline aspects

  • Effective date: July 1, 2026.
  • Status: Introduced and referred to Commerce on March 3, 2025.
  • Reporting obligation: Annual DAS report to the Governor and General Assembly on coverage provided.

Potential impact

  • Creates a uniform health coverage framework between state and nonstate public entities.
  • Shifts premium cost responsibilities partially to local employers and, potentially, to covered employees or elected officials.
  • Provides a set of enforcement tools (withholding state funds) to ensure timely premium payments.
  • Establishes financial oversight through the new trust fund and annual reporting.

Compiled from official sources — confirm details with the bill’s official record.

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