HCS SCS SB 1008 -- HEALTH INSURANCE AND INSURANCE FILINGS

SPONSOR:  Loudon (Ervin)

COMMITTEE ACTION:  Voted "do pass by consent" by the Special
Committee on Health Insurance by a vote of 8 to 0.

This substitute changes the laws regarding health insurance and
insurance filings.

DEPARTMENT OF INSURANCE, FINANCIAL INSTITUTIONS, AND PROFESSIONAL
REGISTRATION ELECTRONIC FILINGS

The Department of Insurance, Financial Institutions, and
Professional Registration is allowed to establish rules and the
web-based delivery method for submitting required
insurance-related filings.  The filings must be carried out in a
manner consistent with the federal Electronic Signatures in
Global and National Commerce Act.  Automobile insurers will be
allowed to send renewal notices electronically as an alternative
to sending the notices by first-class mail if the insured
requests an electronic notice in writing.  Policy cancellations
are prohibited from being sent electronically.

HEALTH MAINTENANCE ORGANIZATIONS (HMOs)

The substitute requires proof that a dependent child is incapable
of maintaining employment due to a mental or physical handicap to
be submitted to the insured's HMO within 31 days after the child
has attained the age when the child's coverage is to be
terminated instead of the current at least 31 days.

GROUP HEALTH INSURANCE POLICIES

Currently, group health insurance policies must contain a
provision that specifies any exclusions and limitations to the
policy in regard to a disease or physical condition that an
individual was treated for during the 12 months prior to the
enrollment date of an individual's policy.  The substitute limits
the exclusions and limitations to the prior six months before an
individual becomes covered under the policy.  Exclusions and
limitations cannot apply to a loss or disability that occurred
after the enrollment date or during the 18-month period
thereafter in the case of a late enrollee.

The substitute requires proof that a dependent child is incapable
of maintaining employment due to a mental or physical handicap
and is dependent upon the policy holder for support and
maintenance to be submitted to the health insurer within 31 days
after the dependent child has attained the age when coverage is
to be terminated in order to sustain coverage instead of the
current at least 31 days.

MISSOURI HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT

The State Children's Health Insurance Program coverage is added
to the list of credible coverages for individuals.

The definition for "waiting period" as it relates to the Missouri
Health Insurance Portability and Accountability Act is revised to
be a time period that must pass before coverage for an employee
or dependent who is otherwise eligible to enroll in a group
health plan becomes effective.  Any time period before late or
special enrollment is not considered a waiting period for late or
special enrollees.  A waiting period begins on the date an
individual submits an application for coverage and ends when the
application for coverage is approved, denied, or lapses.

Health insurance issuers offering group coverage will be required
to provide a special enrollment period for a dependent in the
case of a placement for adoption.

INDIVIDUAL HEALTH INSURANCE POLICIES

The substitute requires proof that a dependent child is incapable
of maintaining employment due to a mental or physical handicap
and is dependent upon the policy holder for support and
maintenance to be submitted to the health insurer within 31 days
after the dependent child has attained the age when coverage is
to be terminated in order to sustain coverage instead of the
current at least 31 days.

MISSOURI HEALTH INSURANCE POOL

Currently, if an individual pays more than 150% of the standard
insurance premium rates, he or she is eligible for insurance
coverage through the Missouri Health Insurance Pool (MHIP).  The
MHIP board is required to establish the eligibility limits, but
the substitute specifies that the limit cannot be in excess of
200% of the standard rates for individual health insurance
coverage.  Federally defined eligible individuals are not
disqualified from being eligible for the pool.

SMALL EMPLOYER HEALTH INSURANCE AVAILABILITY ACT

The definition of "dependent" is revised as it relates to
insurance coverage to be a person that is a spouse, an unmarried
child who resides in Missouri and is younger than 25 years of age
and is not covered by an individual health benefit plan or
entitled to federal Social Security assistance benefits, or a
disabled person who is dependent upon his or her parent.

A small employer can make a defined contribution to its employees
with individual health insurance plans by establishing a
cafeteria plan according to the laws regulating the Missouri
Health Insurance Portability and Accountability Act.

A small employer insurance carrier must reasonably compensate an
agent or broker for the sale of any small employer health benefit
plan, and a small employer carrier must maintain and issue all
health benefit plans it actively markets to small employers in
the state.

Currently, a small employer insurance carrier will not be in
violation of any unfair trade practice if the small employer
charges a lesser premium or deductible for employees who do not
use tobacco products.  The substitute revises the definition of
"unfair trade practice" by using the provisions that apply to all
insurance carriers in Missouri instead of only health and
accident insurance companies.

FISCAL NOTE:  No impact on state funds in FY 2009, FY 2010, and
FY 2011.

PROPONENTS:  Supporters say that the bill will streamline current
processes conducted by the Department of Insurance, Financial
Institutions, and Professional Registration to renew vehicle
registrations and will allow the department to accept electronic
signatures so that all filings can be done electronically.  A
paper form will continue to be mailed unless a person opts to
receive a renewal notice electronically.

Testifying for the bill were Senator Loudon; Missouri Insurance
Coalition; and Department of Insurance, Financial Institutions,
and Professional Registration.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:13 pm