Health insurer Medica to stay in Iowa if subsidies remain
DES MOINES, Iowa (AP) -- A spokesman for health care insurer Medica says it plans to sell insurance in Iowa next year if the federal government continues to fund subsidies for low-income participants using the Affordable Care Act exchange.
Medica spokesman Larry Bussey says Monday a final decision will be based on federal rules. A final decision is expected in September.
Medica is the only statewide insurer left in Iowa. State insurance officials feared the Minnesota-based company might also leave, causing 72,000 people to have no choice next year.
Iowa last week applied for a federal waiver that would allow federal subsidies designed to lower costs for low-income and older participants to be used to entice younger people to buy insurance in hopes of keeping Medica and perhaps attracting others back to the Iowa market.