SENATE REPORT
 Senator John Loudon

FOR IMMEDIATE RELEASE -- March 5, 2003

SEN. JOHN LOUDON SPEARHEADS LEGISLATION THAT WOULD OFFER A FREE MARKET SOLUTION TO RISING INSURANCE COSTS

JEFFERSON CITY -- In the wake of rising medical costs and the reductions in MC+ Children's Health Insurance program, two Missouri lawmakers have sponsored legislation that would offer a free-market solution.

Senate Bill 460, sponsored by Sen. John Loudon, R-West St. Louis County, and House Bill 193, sponsored by Rep. Blaine Luetkemeyer, R-St. Elizabeth, represent a real opportunity for Missouri to be a leader in making insurance available to low-income families.

According to Sen. Loudon, these bills will restore the availability to hospitalization and indemnity plans that predated the skyrocketing health costs that are driving insurance rates to unaffordable levels.

"We have told people that if you want health insurance it is going to be under terms the state dictates and it is going to be expensive," said Sen. Loudon.

Both bills would establish a Mandated Benefit Review Commission within the Department of Insurance.

The commission would be comprised of the director of the Department of Insurance, the director of the Department of Health, four members of the General Assembly (two from the Senate, two from the House, who would serve in an advisory capacity and would not vote), six individuals appointed by the governor with the advice and consent of the Senate, two employers, and two employees who pay a percentage of their employer sponsored health insurance.

Commission members would review all existing state mandated benefits and issue a report to the General Assembly that would discuss the projected costs of all state and federal mandates and the commission would recommend to the Legislature which mandated benefits should be repealed from state law.

In addition, the commission would review all mandated benefits proposed by members of the General Assembly.

A hearing on SB 460 was held on Feb. 26 in the Senate Small Business, Insurance and Industrial Relations Committee, and it was passed out of committee on Wednesday. HB 193 has been passed out of the House Financial Services Committee and will next be sent to the House floor for debate.