Senate File 140 - Introduced SENATE FILE 140 BY RAGAN A BILL FOR An Act relating to the health insurance premium payment program 1 for individuals eligible for the medical assistance program. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2026XS (3) 87 pf/nh

S.F. 140 Section 1. DEPARTMENT OF HUMAN SERVICES DIRECTIVE —— 1 TRANSITION FROM HEALTH INSURANCE PREMIUM PAYMENT PROGRAM TO 2 FEE-FOR-SERVICE MEDICAID COVERAGE. The department of human 3 services shall adopt rules to provide that at any time a 4 health plan or policy, under which an individual eligible 5 for the medical assistance program is receiving coverage 6 through the health insurance premium payment program, is no 7 longer available to or cost-effective for the individual, 8 the individual shall transition to fee-for-service Medicaid 9 coverage rather than Medicaid managed care coverage as long as 10 the individual remains eligible for medical assistance program 11 coverage. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 This bill directs the department of human services to 16 adopt rules to provide that if a Medicaid-eligible individual 17 is enrolled in a health plan or policy through the health 18 insurance premium payment program and the health plan coverage 19 becomes unavailable or is no longer cost-effective, the 20 individual is to transition to fee-for-service Medicaid 21 coverage rather than Medicaid managed care coverage as long as 22 the individual remains eligible for medical assistance program 23 coverage. 24 -1- LSB 2026XS (3) 87 pf/nh 1/ 1