Some of the most meaningful advocacy outcomes are the structural changes that help providers plan and succeed long-term. With support from Iowa Health PAC and active engagement from IHCA members, 2025 brought several future-focused reforms.
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The federal reconciliation bill signed July 4, 2025, excludes skilled nursing facility (SNF) Medicaid programs from harmful funding cuts and places a 10-year moratorium on the federal staffing mandate. The bill does contain major cuts to other provider tax programs which help fund Medicaid for other providers like hospitals. In an underfunded system, these cuts are misguided and will create material challenges for every state’s Medicaid budget – including Iowa’s – in the coming years, which will make competition for scarcer Medicaid resources even more fierce than before.
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During the 2025 legislative session, IHCA helped defeat 13 harmful bills that would have imposed new costs and restrictions on long-term care providers. These advocacy wins were made possible by strong IHCA member engagement and Iowa Health PAC support.
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On Saturday, June 28, the Senate released its updated version of the “big, beautiful” budget reconciliation bill. On Tuesday, July 1, the Senate approved their version of the reconciliation bill. While AHCA/NCAL continues to review the revised language, there are several important updates for members regarding Medicaid provider taxes, retroactive coverage and the staffing mandate.
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Governor Reynolds recently signed two bills to support and expand access across Iowa’s health care system, which include several provisions aimed to assist nursing facilities in addressing staffing shortages, promoting strong quality care and enhancing workplace safety, particularly in rural areas.
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Iowa’s long-term care providers secured a major victory this legislative session with a $54.1 million Medicaid funding increase for nursing facilities in fiscal year (FY) 2026, following IHCA’s successful push to close a $25.3 million state shortfall in the rebase year. To support providers, IHCA has outlined the key outcomes of the rebase, including estimated rate increases, updated cost coverage projections and important variables that may affect individual facility rates.
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The 2025 legislative session brought significant wins for Iowa’s long-term care providers, including historic Medicaid funding increases and key regulatory advancements. IHCA credits these outcomes to sustained advocacy, strong member engagement and political involvement. Iowa Health PAC plays a vital role in this process by helping IHCA educate and build relationships with policymakers. Now more than ever, member contributions to the PAC are critical to sustaining advocacy efforts and driving continued progress.
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The 2025 Iowa legislative session concluded last week, and IHCA is proud to share a strong slate of outcomes that advance access to care, protect providers from harmful legislation and secure vital investments in the long-term care profession.
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