Iowa 2025-2026 Regular Session

Iowa House Bill HF735

Introduced
3/4/25  

Caption

A bill for an act relating to health carriers, pharmacy benefits managers, and the calculation of cost-sharing contributions by covered persons.

Impact

HF735 seeks to harmonize the method by which health carriers calculate the contributions of covered persons toward their cost-sharing obligations. The bill stipulates that all amounts paid by a covered person or on their behalf must be included in the calculation of contributions. This could influence the overall financial responsibility for individuals enrolled in health plans, especially in determining their eligibility for health savings accounts (HSAs). Furthermore, HF735 clarifies that for preventive services, the calculation is to apply without regard to whether the minimum deductible has been met, which could lead to improved access to such services for policyholders.

Summary

House File 735 addresses the calculation of cost-sharing contributions by covered persons within health benefit plans. Specifically, the bill sets forth guidelines for health carriers and pharmacy benefits managers regarding how to account for contributions made toward out-of-pocket costs, such as copayments, coinsurance, and deductibles. The new provisions are set to take effect for health plans delivered or renewed on or after January 1, 2026, ensuring a prospective implementation of the changes described in the bill. The intention behind the bill is to enhance transparency regarding the cost-sharing obligations of insured individuals and to potentially alleviate some pricing complexities within health care plans.

Contention

While there are no immediate points of significant contention highlighted within the discussions surrounding HF735, it may face scrutiny related to its implications for health savings accounts. Critics may raise concerns about potential complexities in how contributions are calculated and whether these changes could result in unintended consequences for individuals, particularly those managing long-term health conditions who may frequently navigate out-of-pocket expenses. As such, discussions on compliance and the regulatory authority of the insurance commissioner to administer the bill may arise during legislative considerations.

Companion Bills

No companion bills found.

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