MDN.ORG:
Missouri Digital News
MDN.ORG
Mo. Digital News
Missouri Digital News
MDN.ORG:
Mo. Digital News
MDN.ORG:
Missouri Digital News
MDN.ORG:
Missouri Digital News
MDN.ORG
Mo. Digital News
Missouri Digital News
MDN.ORG:
Mo. Digital News
MDN.ORG:
Missouri Digital News
JEFFERSON CITY - A bill to allow small business employees access to the state's managed health care plan cleared the House Wednesday by a 101-53 vote after being passed out of the Budget Committee earlier in the day.
Sponsored by Rep. Tim Harlan, D-Columbia, the bill is an attempt to alleviate the increasing financial difficulty small business owners face in providing health insurance for their employees.
Businesses with fewer than 50 employees - including farmers and sole proprietorships - would have the option of joining a small business pool under the Missouri Consolidated Health Care Plan.
The plan currently bids contracts with managed care plans for coverage of state and local government employees. Under Harlan's bill, the state would not pay for the coverage. Instead, supporters argue the state could get cheaper rates for business with a large, consolidated pool of businesses from across the state.
Don Laird, executive vice president of the Columbia Chamber of Commerce, said 80 percent of the chamber's 1,100 members have fewer than 20 employees.
Republicans voted 2-1 against the measure. "We feel every business should have access to health care, but don't feel expansion of a government health care system is appropriate," said minority floor leader Delbert Scott, R-Lowry City. "Given the financial problems, we'd rather go with tax credits."
"Tax credits are worth discussing, but they're not a substitute for affordable health care," Harlan said. According to Harlan, tax credits would come at a high cost to taxpayers, whereas the premiums charged under Missouri Consolidated would eventually negate any cost to the state's budget.
Rep. James Foley, D-St. Louis County and a bill co-sponsor, said he supports the idea of tax credits, but thinks it should be debated separately.
Under the bill, the new coverage plans would be available to businesses on Jan. 1, 1999. By Dec. 1 of this year, the Missouri Consolidated board of trustees would have to complete an actuarial study of the soundness of allowing small businesses into the plan.
Businesses intending to join the plan would have to submit demographic information - such as age and sex of employees - during an annual open enrollment period.
Strong opposition has come from insurance companies, which say they would lack sufficient knowledge to bid wisely on the business pool and that it would attract only high-risk businesses. Though the companies would be able to charge different premiums for each of the pools, they would be required to bid on all three of them.
Rep. David Levin, R-St. Louis County, who voted for the bill, said he remains concerned about the lack of information on who will be in the pool. "I hope in the Senate that the concerns of a third pool and how insurance companies will be able to bid on it will be fine-tuned."
Foley said he believes the bill has gained momentum as it moves to the Senate. "I know the insurance industry will be working hard against it. There's less of them to get to (in the Senate)."
"Small business owners need to continue to communicate to their senators the seriousness of the problem," Harlan said. "I don't think the insurance companies appreciate the position small business owners are in."