Iowa GOP officials offer health care plan based on tax incentives, cost-cutting policies

DES MOINES – Iowa GOP lawmakers unveiled a proposal that includes an array of tax incentives and policies they say would reduce the number of Iowans without health insurance and drive down the cost of premiums.

Sen. David Johnson, R-Ocheyedan, said the states can play a major role in health care reform and cannot wait for Washington to act.

 Johnson said Iowa should encourage private insurers to offer affordable catastrophic health coverage to those between the ages of 18 and 30. That age group makes up about half of Iowa's uninsured.

“It's a very significant group that we as Republicans would like to offer lower-cost products through working with the insurance industry,” Johnson said.

Johnson also is behind a proposal requiring insurers to provide prevention credits for consumers who live healthier lifestyles, such as not smoking and watching their weight. He said these types of credits could save an average family around $1,600 per year in health insurance premiums.

“Healthy people should not subsidize unhealthy people. Healthy people actually ought to get … a cut in their premiums,” Johnson said.

Under the GOP plan, small businesses and individuals would qualify for a dollar-for-dollar tax deduction for their health insurance costs, a benefit currently enjoyed by larger employers.

“Small businesses should have the same ability as large businesses; individuals should be able to capitalize on tax advantages as well,” said Rep. Linda Upmeyer, a Republican from Garner and nurse practitioner.

Republicans did not have an estimate of how much their tax incentives might cost the state, but argued it would be cheaper in the long run than adding people to a government-run plan.

Upmeyer touted a proposal for a “Patients Right to Know Act,” which would establish a statewide information hub allowing consumers to compare cost and quality of health care services online.

In addition, the proposal they released includes medical malpractice reforms that would raise the burden of proof for malpractice claims and place limits on damages.

Republicans also are pushing for a prohibition against denying coverage for pre-existing conditions when consumers change plans with the same insurance provider.

Republican Party of Iowa Chairman Matt Strawn said Iowans who have turned out at health care town hall meetings wanted to express their concern about the possibility of a federal public health insurance option.

“Iowa Republicans believe market-based solutions with minimal state interference, not a massive federal takeover of the health-care delivery system, is the key to making health insurance more affordable and accessible for all Iowans,” Strawn said.