Fiscal Note - SB 0172 - The Dept. of Insurance May Regulate Certain Stop-Loss Insurance Policies
L.R. NO. 0688-01
BILL NO. SB 172
SUBJECT: Health Care, Insurance - General, Insurance - Medical, Department
of Insurance
TYPE: Original
DATE: January 28, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Conservation, the Missouri Consolidated
Health Care Plan, the Department of Public Safety - Missouri State Highway
Patrol, and the Office of Administration assume this proposal would not
fiscally impact their agencies.
Department of Insurance (INS) officials assume this proposal would not
significantly fiscally impact their agency. INS further states that the
passage of more than one similar proposal could require the INS to request
increased appropriations to cover cumulative administrative costs.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(6 Mo.)
$0 $0 $0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(6 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
Small businesses would be expected to be fiscally impacted to the extent that
they would incur savings or additional costs due to the definition
requirements of this proposal.
DESCRIPTION
This proposal would regulate a stop loss insurance policy as a health
insurance policy if the stop loss policy has an attachment point lower than
$10,000. A stop loss policy would be an insurance policy held by a
self-insured business to cover any expenses (health costs) over a set
attachment point. An alternate calculation for evaluating stop loss policies
would be made for employer groups. This calculation would vary according to
the number of employees and expected claims. The Director of Insurance may
change the dollar amount of $10,000 in accordance with the consumer price
index. Further, rules may be adopted by the Director to define when a stop
loss policy would be a health insurance policy. Actuarial compliance forms
would be required to be filed by an insurer each March 15th. The proposal
would apply to policies issued or renewed after January 1, 1998.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Department of Insurance
Office of Administration
Department of Transportation
Missouri Consolidated Health Care Plan
Department of Public Safety
Missouri State Highway Patrol
Department of Conservation
This Fiscal Note is not an official copy and should not be quoted or cited.