Republican lawmakers who won a majority in 2016 - say Iowa's current law provides overly generous benefits and leads to government overspending. Wochit

Union workers gather during a labor rally in the Capitol Rotunda on Tuesday, Feb. 7, 2017, in Des Moines, Iowa.(Photo: Rodney White/The Register)Buy Photo

Sweeping changes proposed to Iowas collective bargaining laws would block most public-sector unions from negotiating over health insurance, though they stop short of instituting a mandatory statewide health insurance system Gov. Terry Branstad has floated.

Republican leaders say they considered including such a plan in the legislation, but felt it could be too restrictive. Instead, the bill leaves open the possibility for a voluntary statewide health insurance program that employers could opt into.

We want to make sure people are able to look at what best meets their needs, said House Speaker Linda Upmeyer, R-Clear Lake. She said she anticipates a statewide program would be made available as an option foremployers around the first of the year.

Branstads spokesman Ben Hammes declined to answer questions about when such a proposal might be madeor what provisions it would include. He said in a statement that if the proposed collective bargaining changes were to become law, "we would begin working to develop common sense solutions" related to health insurance.

But Branstad has spoken extensively about the possibility in recent months.In his Condition of the State address in January, he proposed removing health insurance from collective bargaining negotiations and instead shifting all of Iowas public workers into a single health benefit program.

Iowa has more than 500 health care plans for an estimated 184,000 public employees working in cities, counties and school districts across the state. Merging all of those employees into one plan would help spread the risk in an attempt tokeep costs low while maintaining benefits, Branstad argues.

He and other Republicans have said the state's collective bargaining laws don't give employers enough flexibility to negotiate reasonable health care policies, resulting in overly generous benefits for which taxpayers foot the bill.

When you have public employees getting these Cadillac benefits and paying virtually nothing $20 a month and the taxpayers are paying in some cases over $23,000 (for health insurance) its not fair, Branstad told reporters Monday. It needs to be addressed, and that is why we are going to continue to work with the Legislature and labor committees in both houses to address it.

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Legislation proposed last week in the statehouse would make changes to nearly every aspect of the state's collective bargaining laws. Among the most significant are changes to what public-sector union workers are allowed to negotiate over.

Currently, unions negotiate for wages and health insurance, as well as a wide range of other workplace conditions and employment benefits. The legislation House Study Bill 84andSenate File 213 specifically prohibitsnegotiations over health insurance, though it exempts public safety workers from that provision.

Rep. Dave Deyoe, R-Nevada and House Labor Committee chair, said removing health insurance from negotiations removes barriers on employers that currently prevent them from seeking less costly alternatives.

Its not necessarily making people pay more for health care, he said of the changes. It might be a situation where they can find a policy thats less expensive that provides the same benefits.

Union workers and supporters gathered at the Iowa Capitol during a labor rally in the rotunda Tuesday, Feb. 7, 2017.(Photo: Rodney White/The Register)

But union leaders, who would no longer have a voice in choosing which health plans would be available to their members,say they absolutely expect to see higher health insurance costs. For those currently paying $20 a month, that increase could be dramatic.

Danny Homan, president of AFSCME Iowa Council 61, has said many unions have agreed to lower salaries in exchange for better health benefits.And although Branstad and legislative leaders have said a statewide pool could provide a low-cost alternative, Homan said he's not convinced.

When the governor and Republican leadership claim that a statewide health insurance program would provide savings, they are doing so out of pure speculation and without any facts or figures to back them up, Homansaid in a statement. The last time we trusted the governor on his cost savings plan, we ended up with the disaster that is privatized Medicaid. This is a baseless claim and I cannot comment further until I see something on paper.

Deyoe said that the governors staff made it clear to him that any statewide system would be voluntary. Upmeyer said that's because legislators had some concerns, includingabout people who live along the state's borders.

"If it doesnt allow somebody in Council Bluffs to get some health care in Omaha, it might be a problem," she said. "It might not be what they want. So I think the fact that we have a pool available, that may offer great opportunity. Thats an option. Thats something people can take a look at. But if it doesnt meet their needs, then they can go and look at or create perhaps a different pool."

That statewide plan would be just one option for employers shopping for new health insurance options, she said. The bill lets employers pick the plan they like bestfor their employees.

"I think people will be innovative and creative about what kind of pools they put together, who they work with," Upmeyer said. "And I think thatll be positive."

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Health care stripped from collective bargaining as statewide insurance plan takes shape - DesMoinesRegister.com