HCS HB 936 -- HEALTH INSURANCE

SPONSOR:  Luetkemeyer

COMMITTEE ACTION:  Voted "do pass" by the Committee on Financial
Services by a vote of 17 to 0.

This substitute requires health insurance entities to provide
coverage for associated hearing evaluations, consumable supplies,
and hearing aids for dependent children through 19 years of age
who are covered by a health policy or health plan.  Coverage will
begin after January 1, 2005.

The substitute:

(1)  Specifies the type of hearing aid which will be covered.
The hearing aid must be prescribed and dispensed by licensed
professionals;

(2)  Requires that a replacement hearing aid for children will be
covered once every three years;

(3)  Prohibits a health insurer or health plan from establishing
a benefit cap for hearing aids less than $1,250 per hearing aid,
per ear.  If an enrollee chooses a more expensive hearing aid,
the enrollee is required to pay the difference without a
financial or contractual penalty being imposed upon the provider
of the hearing aid.  Health insurers or health plans are also
prohibited from requesting hearing acuity information from
enrollees;

(4)  Allows a health insurer or health plan to provide more
favorable insurance coverage for hearing aids;

(5)  Prohibits enrollees from being subject to greater
deductibles and copayments than other similar health care
benefits or services;

(6)  Exempts supplemental insurance policies; and

(7)  Authorizes the Director of the Department of Insurance to
develop rules to implement the provisions of the substitute.

FISCAL NOTE:  Not available at time of printing.

PROPONENTS:  Supporters say that hearing aids cost an average of
$2,300 per ear and are beyond the reach of many young parents.
Without the ability to hear, children cannot learn.  Ninety
percent of these children are born to hearing parents who are
unable to fully communicate with their children.  Current law
covers children until age three, but then coverage disappears.
The bill requires only about 25% of the patient's costs to be
covered; and these costs will be incurred by less than 300
children each year, so the impact on premiums from this mandated
coverage will be negligible.

Testifying for the bill were Representative Moore; Jody Pacheco;
Missouri School for the Deaf; Missouri Commission for the Deaf
and Hard of Hearing; Paraquad Association; and Governor's Council
on Disability.

OPPONENTS:  Those who oppose the bill say that every year 10 to
15 groups ask for mandated health coverage for various illnesses
and conditions.  Individually it doesn't cause drastic financial
problems, but collectively it will cause health insurance to
increase to the point that many people will lose their health
insurance altogether.

Testifying against the bill was Blue Cross/Blue Shield.

Richard Smreker, Senior Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:14 am