HB 193 -- HEALTH INSURANCE

SPONSOR:  Luetkemeyer

COMMITTEE ACTION:  Voted "do pass" by the Committee on Financial
Services by a vote of 15 to 4.

This bill creates the Mandated Health Benefit Review Commission.
The commission will review all health insurance coverage mandates
currently required by law and any such mandates offered by
legislators in the future.  The commission must file a report
with the General Assembly by January 2005 detailing any proposed
changes to those mandates currently in law.  Any bill containing
a health insurance coverage mandate must be evaluated by the
commission before the law can be enacted.

The bill sets forth an extensive list of issues that the
commission must address when it reviews any proposed mandate.
The commission will be composed of the directors of the
departments of Insurance and Health and Senior Services, two
members of the House of Representatives, and two members of the
Senate, all of whom serve as ex-officio members.  The Governor
will appoint six voting members to the commission who will
include two individuals representing employers, two employees who
pay for a portion of their health insurance, and two individuals
who purchase their own health insurance.

The bill also removes all of the mandated coverages from the
Limited Mandate Health Insurance Law.  Under current law, health
insurers may sell a less expensive health insurance policy that
does not include many of the coverages that are mandated by law.
This "limited mandate" policy contains nine mandated coverage
areas.  The bill removes those nine mandated coverages, which
include maternity stays in the hospital, mammograms,
immunizations, PKU coverage, and coverage for adopted children.
The bill also removes language that restricts the marketing of
limited coverage to people who do not have health insurance.

FISCAL NOTE:  Estimated Net Cost to Insurance Dedicated Fund of
$133,329 to $333,329 in FY 2004, $155,444 to $355,444 in FY 2005,
and $158,055 to $358,055 in FY 2006.

PROPONENTS:  Supporters say that mandated coverages account for
25% to 35% of the increased cost of health insurance, since the
limited mandate coverage option was created.  During that time,
20% of the people who have lost their coverage did so because of
these mandates.  The average mandate causes a 3% increase in
premiums.  There needs to be a cost/benefit analysis on every
proposed mandate.  Creating a commission that can carefully study
each proposal, free of the emotions and politics that can take
over a legislative hearing, will allow the legislature to study
the actual long-term effects of proposed legislation.  Employers
should be the ones choosing what insurance they want to purchase,
not the legislature.

Testifying for the bill were Representative Luetkemeyer; St.
Louis Area Business Health Coalition; Missouri Chamber of
Commerce; Covington Health Care; Missouri Association of Health
Plans; American Association of Independent Insurers; Blue
Cross/Blue Shield of St. Louis; Missouri Insurance Coalition;
Healthlink Inc.; Blue Cross/Blue Shield of Kansas City; United
Health Care of the Midwest; National Federation of Independent
Businesses; and Group Health Plan.

OPPONENTS:  There was no opposition voiced to the committee.

Richard Smreker, Senior Legislative Analyst

Missouri House of Representatives
Last Updated July 25, 2003 at 10:11 am