In a new measure approved Tuesday by the Legislature, Missouri may soon have the authority to review the prices of some health insurance plans before they’re sold to consumers in the state.
Health care and consumer advocates say the measure, which now heads to Gov. Jay Nixon’s desk, represents a significant step for Missouri, which was one of a few states that lacked an effective rate review program.
For plans starting Jan. 1, 2018, the legislation requires health insurance carriers offering small group and individual plans to submit rates with the Missouri Department of Insurance, Financial Institutions & Professional Registration.
The department then will have 60 days to review the rates and determine whether the pricing is reasonable or unreasonable.
Although the bill does not give the state the ability to deny rates, particularly those that are found excessive, advocates says it still encourages more competitive pricing.
Read more: St. Louis Post-Dispatch