Schneider Statehouse Report: Branstad Unveils Healthy Iowa Plan

(Editor’s note: Sen. Charles Schneider advised Patch that he inadvertently emailed the Senate Republican Caucus's talking points as his column on Saturday; they points do not necessarily represent my personal views on the issues. The following newsletter represents the senator’s views.)

By Sen. Charles Schneider

Gov. Terry Branstad unveiled the Healthy Iowa Plan this week. Healthy Iowa is a component of his proposed alternative to Medicaid expansion. The plan would cover all of the approximately 89,000 uninsured Iowans earning below 100 percent of the federal poverty level.

The governor is still filling in the details of the Healthy Iowa Plan, but here’s what we know about it now:

• Payments to providers are based on the quality of care they deliver;
• It encourages people to take control of their health by providing financial incentives for healthy behavior;
• More hospitals will participate in the plan than participate in IowaCare;
• It will cost $23 million the first year;
• It does not include mental health coverage.

There are still a lot of questions I have about this plan, and I’ll be scrutinizing it as closely as I’m scrutinizing Medicaid expansion. As I’ve said before, this is an issue that calls for getting as much information as possible so that we make a fully-informed decision.

In order for Healthy Iowa to become an option to Medicaid expansion, the U.S. Department of Health and Human Services will need to grant a waiver. The Iowa Legislature will also need to approve the plan. 

Property Tax Reform

Both Democrats and Republicans have talked about making property tax reform a high priority for this legislative session. Iowa’s commercial property tax burden is the third highest in the country. This uncompetitive property tax burden discourages business and job growth statewide. Easing this burden would help us retain and attract jobs to our state.

Gov. Branstad filed his property tax proposal earlier this year. His plan rolls back property tax rates for commercial and industrial taxpayers. It helps residential property tax payers by limiting annual growth rates on all classes of property.  It also holds local governments harmless by backfilling lost revenues.  

Senate Democrats recently filed their own property tax plan.  Their bill creates a fund that will issue property tax credits to commercial property taxpayers.  The bill appropriates $50 million to the fund in the first year. It appropriates an additional $50 million to the fund each year that general fund revenues grow by at least 4 percent, up to a maximum of $250 million.  When fully funded, it would provide property tax relief on the first $325,000 or so of assessed valuation.

There has not been much effort yet to reconcile these proposals.  If we want to get something done on this issue this session, it’s important that both sides come together and find a way to make it happen.  Let’s not let another year pass us by with nothing to show for property tax relief.  

Upcoming Legislative Forums

March 16, 9-10:30 a.m, West Des Moines City Hall

April 6, 9:30-11 a.m., Waukee City Council Chambers

(Sen. Charles Schneider represents Senate District 22, which includes Waukee, Clive, Windsor Heights and part of West Des Moines Contact him at Charles.Schneider@legis.iowa.gov or at 515-281-3371.)