Click here to view the embedded video.

Click here to view the full video clip.

Click here to see the full video clip.

Click here to watch the full video clip.

View video from last night’s MSNBC here.

If you haven’t watched Zach’s speech watch it here.

We are here today to find out what is driving these outrageous rate increases and what we can do to ensure each and every rate increase is truly justified.

From small businesses to non-profits to individuals, the effects of these yearly rate increases are putting a heavy burden on too many Iowa families.

We’ve received hundreds of emails and calls from Iowans throughout the state. There are several common themes to their stories –

• The rising cost of their health insurance is not sustainable.

• At the same time their rates are rising, their coverage is shrinking.

• We’ve heard about the increasing barriers they are facing in obtaining coverage and how the impact of preexisting conditions is stifling Middle class families, our economy and our state’s small businesses.

Most Iowans do not understand what a “medical loss ratio” means because they have no virtually no information on how it is calculated and if it being regulated effectively.

Iowans want to know if their premium increases are paying for Wellmark’s new corporate headquarters and employee raises and bonuses. They want to know why reserves were not used to offset their rate increases. They want to know how Wellmark’s reserve dollars are invested and if Iowans are paying the price for its investment losses.

My goal is to ensure that Wellmark’s insurance rate increases are justified and that Iowa small businesses or families are not being taken advantage of. I believe Iowans deserve to know why their health insurance rates are increasing, what they can do to lower their rate, and what we can do to ensure they receive reasonable notification of rate increases.

To paraphrase what Congressman Waxman said yesterday at a Congressional Hearing on premium increases, “Iowans cannot afford to go down this road forever. It is breaking our Middle Class. It will bankrupt our state and country.”

I want to thank our Insurance Commissioner Susan Voss and Wellmark executives Laura Jackson, Group VicePresident for Provider Relations & Health Management and Pat Ryan, chief actuary, for being here today to answer Iowans questions about their rate increases and assist the legislature in bringing more accountability and transparency to health insurance regulation.

Click here to view the embedded video.

The 2010 legislative session opened on Monday, January 11th at the State Capitol.  House leaders said the session will focus on help for middle class families and small businesses.  Priorities include balancing the budget without raising taxes, creating good-paying jobs, strengthening Iowa schools, and making government more accountable and transparent.

The House has two new members this year.  Rep. Curt Hanson of Fairfield and Rep. Kirsten Running-Marquardt of Cedar Rapids were both elected to the Iowa House last fall in special elections.

To listen to opening remarks by House Speaker Pat Murphy, click here.

To listen to opening remarks by House Majority Leader Kevin McCarthy, click here.

“In today’s tough economic times, we must make sure every Iowan has access to a quality, affordable education,” said State Representative Cindy Winckler of Davenport, who chairs the House Education Appropriations Subcommittee. “With our difficult budget situation, our top priority this year was to reduce administration costs to keep as many resources in the classroom as possible.”

The Education Appropriations Budget, Senate File 470, appropriates $909.8 million of state moneys to Iowa’s K-12, higher education schools and state education agencies. One priority of the bill was Empowerment Family Support to keep critical services for children from birth to five years.

The bill also offers additional assistance to Iowa veterans. The National Guard Education Assistance Program will receive $3.5 million to help Iowa veterans who plan to enroll in higher education within the state.

“I’m proud we are keeping our commitment to veterans and helping them get the education they deserve after serving our country,” added Winckler.

“As the director of a rural economic development corporation, I strongly support the middle-class tax cut because our small businesses and farmers could use some help right now,” said Roger Thomas of Elkader, the chair of the House Economic Growth Committee. “Under the middle-class tax cut, taxes will be cut or be unchanged for 80 percent of farmers and about 70 percent of small businesses. That’s great news for the Iowa economy.” ( You Tube )

“The facts back up this basic argument: the middle-class tax cut will help the big majority of Iowa small business owners and farmers because they are in the middle class. It is that simple.” said Senator Bill Heckroth of Waverly and the Vice-Chair of the Commerce Committee. “I’m a financial advisor by profession. I work directly with Iowa small business owners and farmers. Most pay taxes on their business income through their individual tax returns. That’s why the middle-class tax cut makes their taxes lower and fairer.” ( You Tube )

State and local economic development groups across Iowa long urged lawmakers to reduce Iowa’s income tax rate, which is often perceived to be the 4th highest in the nation. The middle-class tax cut proposal will lower tax rates for all Iowans and lower Iowa’s top tax rate by 22 percent, from 8.98 to 6.98 percent.

Taxes will be cut for more than 60 percent of Iowa taxpayers, more than 825,000 Iowa households. Nearly 75 percent of Iowa taxpayers – almost 1 million households – will either have a tax cut or no change at all to their taxes. Overall, Iowa income taxes will be cut by $55 million.

“We are fighting to make Iowa’s taxes lower, fairer, simpler,” said Representative Paul Shomshor of Council Bluffs, a certified public accountant and chair of the House Ways and Means Committee. “When you do that, you get some pushback from the people at the top who like the tax system the way it is. Our response is to tell the truth. In this case, the truth is that this middle-class tax cut helps most Iowa farmers and small business owners.”

“This is not a tax cut for the special interests. This is a tax cut for the middle class,” said Senator Joe Bolkcom of Iowa City, chair of the Senate Ways and Means Committee. “Legislators will have the opportunity to cut taxes for more than 60 percent of Iowa taxpayers and for even higher percentages of Iowa farmers and small business owners. That’s a good thing and that’s why I think this plan will pass.”