IowaHF 97291st General Assembly (2025–2026)HouseWALLET

A bill for an act relating to health care including a funding model for the rural health care system; the elimination of several health care-related award, grant, residency, and fellowship programs; establishment of a health care professional incentive program; Medicaid graduate medical education; the health facilities council; and the Iowa health information network, making appropriations, and including effective date provisions. (Formerly HF 754, HSB 191.) Contingent effective date, effective 05/28/2025, 07/01/2025.

Sponsored By: COMMITTEE ON APPROPRIATIONS

Signed by Governor

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 3 benefits, 2 costs, 4 mixed.

New health worker awards limit eligibility

Beginning May 28, 2025, Iowa offers loan repayment or income bonuses for listed high-demand health jobs in designated shortage areas. Annual award decisions begin July 1, 2025, with priority for full-time applicants. Full-time service generally requires five consecutive years with at least 2,080 work hours each year. Payments are 20% after year one, 15% after each of years two through four, and 35% after year five. Part-time service generally requires seven consecutive years with at least 1,560 hours each year; awards are prorated. The published aggregate award limit for each profession cannot exceed $200,000; this is not a promised individual payment. Current and former participants in the listed legacy programs cannot qualify. Recipients must sign an agreement, start their service within six months, and meet state licensing requirements.

Older health worker aid programs end

Iowa ends its older primary care, rural primary care, health worker recruitment, health care award, and mental health loan repayment programs. Primary care provider loan repayments remain protected for contracts signed on or before December 31, 2025. The other programs preserve loan repayments for agreements signed on or before June 30, 2025. Recipients must keep meeting their contract obligations, and money already committed to those payments stays protected. Annual awards also continue for recipients selected on or before June 30, 2025.

Iowa seeks Medicaid medical training payments

Beginning May 28, 2025, Iowa must request federal approval for extra Medicaid payments supporting graduate medical education. The goal is to maximize federal training funds and increase medical residency slots in Iowa. After approval, the department must notify lawmakers and the Code editor. Several related funding and program changes take effect only after that notice. The request itself does not guarantee approval or mean payments have started.

Iowa seeks rural care partnership funding

Beginning May 28, 2025, Iowa must request federal approval for a rural health care partnership funding model. The hub-and-spoke model supports collaboration among regional rural health providers. The required request does not guarantee federal approval or funding.

Unused funds support health worker awards

Beginning May 28, 2025, Iowa creates a fund dedicated to the new health care professional incentive awards. Money not already committed in four older program funds moves into this fund when the transfer rules take effect. Further leftover money moves after existing agreements and awards end and their committed amounts are spent. Unused money stays in the new fund at year-end, and fund earnings can pay administrative costs. The law states no funding or transfer amount.

Health facilities lose planning grant option

Iowa health facilities lose the statutory option to apply for matching grants to develop their plans. They can still seek technical help with planning. The law gives no grant amount.

Dentist loan aid loses funding options

Iowa removes two authorized funding sources for its dentist education loan repayment program. They are the health care workforce shortage fund and the fulfilling Iowa’s need for dentists matching grant account. The dentist loan repayment program itself remains. The law states no funding loss amount or replacement source.

Patient data sharing gets privacy safeguards

The Iowa health information network must use industry-accepted security safeguards that meet at least federal health privacy requirements. Patients must have a way to opt out that minimizes burdens on them and health professionals. Network participants must give other participants a nonexclusive right to retrieve and use shared information. That use must follow state and federal law and standards set by Iowa’s health department rather than the former board.

State health department reviews facility projects

Iowa’s Department of Health and Human Services takes over certificate-of-need decisions from the Health Facilities Council. It generally must issue a written approval or denial within 90 days after accepting an application, with a statutory exception. Certificates last up to one year, but the department can extend them when reasonably needed. It can also revoke certificates when projects make too little progress. Affected people retain rehearing and appeal rights, subject to review participation requirements.

Sponsors & Cosponsors

Sponsor

  • COMMITTEE ON APPROPRIATIONS

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 136 • No: 5

Senate vote • 5/13/2025

Passed Senate

Yes: 41 • No: 4

House vote • 3/26/2025

Passed House

Yes: 95 • No: 1

Actions Timeline

  1. NOBA: Final

    6/18/2025legislature
  2. Signed by Governor.

    5/28/2025House
  3. Reported correctly enrolled, signed by Speaker and President, and sent to Governor.

    5/27/2025House
  4. Message from Senate.

    5/13/2025House
  5. Immediate message.

    5/13/2025Senate
  6. Passed Senate, yeas 41, nays 4.

    5/13/2025Senate
  7. Substituted for SF 618.

    5/13/2025Senate
  8. Explanation of vote.

    4/22/2025House
  9. Attached to SF 618.

    4/3/2025Senate
  10. NOBA: House Floor

    3/28/2025House
  11. Read first time, passed on file.

    3/27/2025Senate
  12. Message from House.

    3/27/2025Senate
  13. Immediate message.

    3/26/2025House
  14. Passed House, yeas 95, nays 1.

    3/26/2025House
  15. NOBA: House Full Approps

    3/25/2025House
  16. Introduced, placed on Appropriations calendar.

    3/21/2025House

Bill Text

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