SB 1043 Summary

• Allows employers with 2-50 employees a $250 tax credit per employee for qualified health insurance expenses for high deductible health plans, effective for taxable years beginning January 1, 2010, with unused credits carrying forward up to four years.

• Exempts insurance companies from state premium taxes on high deductible health plans sold to Missouri residents, effective January 1, 2011.

• Requires group health policies to allow individuals age 55 or older to continue coverage beyond COBRA/state continuation coverage limits, with premiums capped at 102% of current employee rates plus employer contribution amounts.

• Mandates that continuation coverage experience be pooled across all fully insured group business in Missouri to prevent rate increases on original group plans due to continuation coverage claims.

• Authorizes health carriers to offer high deductible health plans as continuation coverage options and directs the insurance commissioner to study regulatory barriers limiting entry of new health insurance products into Missouri market, with report due January 1, 2011.