The idea was designed to stabilize health care insurance in the state, making premium costs based on age in addition to income. Just one company - Minnesota-based Medica - plans to provide policies next year with an anticipated 58 percent increase in premiums.
Gov. Kim Reynolds says the state decided to pull its proposal because federal agencies signaled it would be week before they could provide details on the financial viability of the program.
Open enrollment for coverage next year under the law begins in nine days, and 72,000 people in Iowa buy their own policies.
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Iowa has withdrawn its request with the Trump administration to opt out of the Affordable Care Act and redirect federal money toward lowering premiums for younger participants in a single state-run program.