Mo. Director Praises Legislature for Passing Health Insurance Bill for Small Employers

Department of Insurance Director Dale Finke today praised the Missouri Legislature for passing House Bill 1827, which will allow more small employers to obtain health insurance for their employees.

According to release issued by the Missouri Insurance Department, the bill allows small businesses to pool together to purchase health insurance for their employees. Small employers, considered to have twenty-five or fewer employees, are generally charged higher rates for health insurance as their risk is spread over fewer employees than larger employers.

“The passage of House Bill 1827 is a win for small employers across the state,” Finke said. “I commend Rep.Wasson and the legislature as a whole, for realizing the importance of health insurance for hard-working Missouri families.”

Last year, the department granted tentative approval to allow an insurer to market health insurance plans to members of Southwest Area Manufacturers Association (SAMA), a Springfield-area trade organization. This approval allowed almost 2,000 employees, who may not have previously had available health insurance, to be covered. The members of SAMA have one rate structure and a uniform plan approved by the members. The department will examine and evaluate the plan’s effectiveness at the end of two years.

House Bill 1827 will allow associations similar to SAMA to provide health insurance coverage to their employees and will promote the growth of small business in the state of Missouri, according the Department’s statement.

For more information go to http://www.insurance.mo.gov.

Source: Missouri Department of Insurance