History

Wellmark Blue Cross and Blue Shield has committed up to $5 million of its projected insurance premium tax reduction to fund the startup of Iowa businesses. The $5 million is part of $25 million Wellmark pledged earlier in 2002 to designate for Iowa-based economic development opportunities. This year, in order to improve the ability of Iowa-based insurance companies to compete nationally, the Iowa Legislature passed and Governor Tom Vilsack signed into law Senate File 2318; the bill reduced the state's insurance premium tax from 2 percent to 1 percent phased over a four-year period through 2007.

The legislation was viewed as crucial to maintain Iowa's prominence as a major center for insurance and financial services companies and to enable the future growth of this industry by attracting new companies to Iowa and retaining existing businesses. As part of this change in law, Wellmark, along with several other insurance companies, voluntarily agreed to support a plan to commit $60 million of the projected insurance premium tax reduction for economic development in Iowa.