IA| The Iowa Insurance Division issued Bulletin 25-01 to inform Health Maintenance Organizations (HMOs) serving as Managed Care Organizations (MCOs) under Iowa’s medical assistance program about premium tax deferral policies. Starting January 1, 2024, payments received by these HMOs are classified as premiums subject to taxation under Iowa Code § 432.1(2). The applicable tax rates vary annually, beginning at 0.975% in 2024 and decreasing incrementally to 0.9% by 2027 and beyond. While a portion of the premium tax is deferred, HMOs must pay the non-deferred amount by March 1, 2025, to avoid penalties such as license suspension or revocation.
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