JEFFERSON CITY, Mo. – Gov. Jay Nixon signed SB 865 into law Tuesday as a way to enable the Missouri Department of Insurance to review the rates offered by plans under the Affordable Care Act, colloquially known as Obamacare. As of now, the only regulators able to investigate those rates are at the federal level, but the Missouri Health Insurance Rate Transparency Act authored by Sen. David Sater, R-Cassville, seeks to change that.
The other 49 states have also adopted similar measures since the passage of Obamacare.
“Up until now, Missouri was the only state in the nation without the ability to review health insurance rates, ceding that responsibility to the federal government,” Nixon said in a statement. “Now, with this legislation, Missouri consumers will no longer be in the dark when shopping for health insurance plans.”
The DOI can determine whether or not rates are reasonable, inadequate or even discriminatory in terms of cost versus services provided. For those in the health insurance industry, this bill is largely seen as a much needed boosted to ensure that consumers get fair treatment.
“Rate review doesn’t get many headlines but being able to evaluate insurance increases before they go into effect is a big win for Missouri families,” said Lhakpa Tsering, executive director of the Missouri Health Advocacy Alliance. “The Governor’s action is a step toward a more transparent and fair health insurance marketplace.”
Sater was not immediately available for comment. It passed through the Senate unanimously 32-0.
