February 9, 2006

HIGHLITES FROM THE SENATE

SENATOR MARK ZIEMAN

Health care is a hot button issue at the Statehouse. Many who self-insure saw the average family policy premium top $10,000 last year. Employers who provide policies to their workers are struggling to make ends meet as well. Although Iowa ranks near the top of all the states with the percentage of people who are insured, we can do better. We know that personal involvement in one’s health care drives costs down. If we can provide the tools that will allow personal ownership and responsibility of health care, then we can begin to control upward spiraling costs.

We are working with the insurance industry on a bill that would make the establishment of Health Savings Accounts (HSA) much easier. A major question with an HSA is what would happen if an illness occurred before funds to pay the expenses are built up in the account. The bill now being crafted would provide a revolving loan fund to frontload these accounts. A participant could draw from the fund for up to two years, but it would have to be repaid.

We are also proposing tax credits for businesses with fewer than fifty employees that provide health care insurance. According to the Department of Labor, there are 81,937 companies in Iowa that employ fewer than 50 people. The goal is to encourage more employers to provide coverage for their workers.

I have received several emails suggesting uses for the $280 million of new revenue in our state coffers. Unfortunately, the funding increases built into the budget are larger than the new dollars coming in. This state would be in dire straights had we not experienced this growth in revenue. I am aware of at least $70,000,000 of built-in spending increases that the new monies will not cover.

City Hall in Cresco will be the location of my next legislative forum. It will begin at 9:00 am on Saturday, February 18th, and last as long as there are questions and concerns to discuss. Hope you are able to attend.

For further information or clarification, please contact me at the Capitol (515) 281-3371 or at my home (563) 864-3104