Iowa Governor Signs Patients First Legislation Supported by Iowa Hospital Association
The Iowa Hospital Association (IHA) today celebrated Governor Kim Reynolds’ signing of HF2635, the Patients First insurance reform bill, a major piece of legislation championed by Iowa hospitals and health systems. The new law is designed to improve patient access to care and reduce unnecessary administrative burdens that delay treatment.
“We appreciate the bill sponsors — Reps. Austin Harris (Appanoose) and David Young (Dallas), and Sen. Kara Warme (Story) — as well as Governor Reynolds and the many lawmakers who worked in a bipartisan manner alongside hospitals to advance practical reforms that put patients at the center of care,” said Chris Mitchell, IHA President and CEO. “By reducing red tape and improving accountability for insurers, hospitals and providers can spend more time caring for Iowans and less time and expense on paperwork. We are grateful for the strong bipartisan votes this bill received in both chambers.”
“The Patients First legislation is one of the most important bills advanced this legislative session,” said Rep. Austin Harris. “It takes meaningful steps to reduce administrative delays that too often frustrate patients and providers alike. These reforms ensure medical care is driven by patient needs and not delayed by unnecessary insurance hurdles – while creating a more accountable and efficient process for everyone involved.”
IHA’s Patients First insurance reform bill modernizes Iowa law to help ensure timely, affordable access to high-quality healthcare statewide. Too often, access and affordability are hindered by excessive documentation requirements, delayed or denied payments, and insurance reviews conducted by individuals without appropriate clinical expertise. These challenges drive up costs and divert provider time away from patient care.
Key provisions include:
Audit Standards: Establishes clear and enforceable timelines for insurers to initiate audits, process provider appeals, and reach final resolution.
Peer-to-Peer Reviews: Sets standards for insurer peer-to-peer reviews of prior authorization requests and requires insurance reviewers to have appropriate clinical qualifications.
Prior Authorization Reform: Eliminates prior authorization requirements for certain cancer screening services and emergent conditions that arise during an inpatient stay.
Prohibition on Out-of-Network Penalties: Prohibits insurers from financially penalizing hospitals for affiliating with, referring to, or collaborating with out-of-network providers, and bans “take-it-or-leave-it” contracting practices.
IHA leaders said the new law reflects months of advocacy by hospital and health system leaders across Iowa, who shared firsthand examples of how administrative barriers and discharge delays negatively impact patient care and hospital operations. The bill passed both legislative chambers unanimously.
“This session demonstrated what can happen when hospitals, providers and policymakers work together around shared goals,” Mitchell added. “These reforms will strengthen Iowa’s healthcare system and improve the experience for patients and providers alike.”
Photo caption: Today, Gov. Kim Reynolds, state legislators and hospital leaders gathered at Monroe County Hospital & Clinics as Gov. Reynolds signed the Patients First legislation.