The Small Business, Insurance and Industry Committee, on which I sit, held its first hearing this week to consider a handful of bills, including a measure dealing with an issue we talked about extensively last year:  strengthening the requirements for unemployment benefits.

Unemployment benefits grew out of the policies of the New Deal, the federal government’s response to the Great Depression and its lingering effects on our economy. In that context, the program made sense. Millions of Americans were left jobless, penniless and homeless. The benefits were a temporary way to ensure families could afford to live until they recovered.

Today’s unemployment system has completely outgrown those original, time-specific intentions. Currently, unemployment is funded by a tax surcharge levied against employers. The state distributes the benefits. When funds fall short, however, the state relies on loans from the federal government.  

In the wake of 2008, most states, including Missouri, were forced to “borrow” money from the federal government to continue providing benefits to the unemployed. These federal loans must be repaid by states within a certain time frame. Right now, our state owes Washington an estimated $300 million.

To pay back those funds, Missouri employers will soon face higher unemployment insurance surcharges, possibly doubling what they currently pay, which is around $105 per individual. Needless to say, this is an incredible burden on employers, especially as we try to encourage job creation through expansion and growth.

On top of that, the approval guidelines for these benefits are ridiculously loose. A person fired from a job for misconduct—such as not showing up for work for days on end without notice, or falling asleep at the job repeatedly—should not be allowed to receive unemployment. But the current definition is unclear and wide open for interpretation. People who should have been disqualified are now drawing benefits, putting severe fiscal pressure on the entire program and jeopardizing a system that has helped those who legitimately found themselves out of work through no fault of their own.

On Tuesday, the Small Business, Insurance and Industry Committee heard testimony on Senate Bill 510, which redefines “misconduct” so that only those individuals who truly deserve the benefits will receive them. This will shrink the system to a more reasonable size, easing some of the financial burden that will soon be placed on employers. The bill could save the state millions over the next few years, and go far in reforming a government program that has been abused for far too long.

The committee also heard two bills regarding health insurance navigators in Missouri. These professionals help consumers apply for insurance through the new health care insurance exchanges, as established by the Affordable Care Act. Navigators deal with highly sensitive personal information and guide people through a decision that could have long-term effects on their lives.

Despite this, navigators are barely regulated here in Missouri. A law was only passed last year requiring navigators be licensed in the state. If we’re going to allow navigators to operate in Missouri, they have to be properly vetted and subject to the same strident requirements as any other licensed professional.

The committee heard two bills on Tuesday that would further this goal. Senate Bill 498 would require all navigators be bonded, and creates a private cause of action against those who release private information. Senate Bill 508 would require navigators to take a test created by the Department of Insurance and submit to a background check.

Both of these measures create reasonable qualifications to become a navigator. They’re not partisan measures—they simply put in place some common-sense requirements to protect the public. A person’s health is an incredibly sensitive, and private, issue. We must ensure those who play an influential role in citizens’ health care decisions be held to the highest standards we can create as a state.

If you have any questions or comments about this or any other matter regarding your state government, please feel free to contact me at (573) 751-1503; you are also welcome to e-mail me at jay.wasson@senate.mo.gov.