Health care coverage would be extended to 30,000 currently uninsured Iowa children under a bill passed by the state Senate Human Services Committee Wednesday.

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“We are on track to covering all Iowa children eligible for public health insurance. That will extend health insurance to 30,000 currently uninsured children, giving Iowa the highest percentage of insured children in the nation,” said Sen. Amanda Ragan, D-Mason City.  “That accomplishment will make all Iowans proud.”

The bill would also help adults looking for affordable insurance options by allowing them to be considered state employees for the purpose of enrolling in a state health or medical group insurance plan. In order to be eligible to participate, an employer must apply for coverage and all employees must agree to enroll in a state plan. Pooling their workforce with the state is expected to lower premiums for small business owners.

Other reforms, such as a requirement that parents sign their children up for government insurance if they qualify and a ban on gifts to doctors from pharmaceutical companies, are also included in the bill.

“The state will create an ‘Iowa Insurance Exchange,’ an organization that will outline a high quality, affordable health care plan and invite private insurers to bid for the opportunity to provide it,” said Sen. Joe Bolkcom, D-Iowa City. “This will increase options while reducing complexity for adult Iowans struggling to find an affordable plan.”

Funding for the measure will come from money allocated last year when legislators first adopted the goal of insuring all Iowa children, from the recent reauthorization of federal dollars for children’s health insurance and from the federal stimulus plan.

“Thanks to strong, bipartisan support, Iowa is on track to become the first state in the nation where all children have access to affordable health insurance,” said Sen. Jack Hatch, D-Des Moines. “The three-year goal of covering all Iowa’s kids is part of a fundamental reform of Iowa’s health care system.”

The bill originally called for the extension of public health insurance to immigrant children who are in the country illegally, but that piece of the legislation was dropped.

The measure will now go before the full Senate.