Missouri Senate Bill SB925

Missouri 2024 Regular Session

• Introduced: 1/3/24
• Refer: 1/25/24

Caption

Specifies that certain contracts for health care benefits provided by qualified membership organizations to their members shall not be considered insurance under the laws of this state

Impact

The bill impacts state laws by clarifying what constitutes a health care benefit contract and delineating the bounds within which qualified membership organizations can operate. The implications of this change could allow for innovative models of health care delivery, particularly in rural areas where traditional insurance models may not be as viable. By allowing membership organizations, such as farm bureaus, to provide health care benefits without being classified as insurance, SB925 potentially opens avenues for individuals who may lack access to conventional health insurance options.

Summary

Senate Bill 925 aims to define and regulate contracts for health care benefits provided by certain qualified membership organizations in Missouri. Specifically, the bill adds a new section to Chapter 376 of the Revised Statutes of Missouri, establishing that contracts issued by these organizations will not be considered as insurance under state laws. This establishes a specific legal framework that excludes these contracts from certain insurance regulations, thus providing these organizations greater flexibility in offering health-related benefits to their members.

Contention

Notable points of contention surrounding SB925 include concerns that the legislation might bypass crucial consumer protections typically associated with licensed insurance products. Critics may argue that labeling these contracts as something other than insurance could lead to a lack of accountability and regulation in the health care marketplace. Furthermore, by specifically defining qualified membership organizations that can provide these benefits, there may be worries about fairness and the potential exclusion of other organizations that could also serve their members effectively but do not meet the bill's outlined criteria.