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Senate committee passes altered HMO bill

JEFFERSON CITY - Limited cost regulation would be tested for managed health care under a provision approved by the Senate Aging Committee.

The committee stuck onto the House-passed managed care bill a provision to establish up to two pilot programs of "community rating."

The bill does not define community rating. However, it is a term that has been used to mean that companies are restricted to charging standard, pre-set rates for particular areas, or communities.

The amendment approved by the Senate committee Thursday would allow rate differences for some factors, such as age, and "family composition."

That amendment was spearheaded by the Missouri Hospital Association.

The full managed-care bill now goes to the full Senate for debate.

The bill, sponsored by Sen. Joe Maxwell, D-Mexico, and Rep. Tim Harlan, D-Columbia, was passed by the House earlier this month.