During session last  year the Missouri Legislature passed  a bill sponsored by District Representative Jay Wasson that will helps small businesses join together to provide health insurance for their employees. Then this year, House Bill 818, co-sponsored by Wasson, passed out of the House and was sent on the state senate. This bill will allow any Missourian who chooses to buy health insurance to deduct their health care premiums from their state income taxes.

This bill takes a new approach by turning away from employer-sponsored health insurance and shifting toward the interests of the individual rather than the employer, insurer or provider. By changing the laws regarding the Missouri Health Insurance Pool regarding small business insurance availability, prescription drug formularies, and health carrier claims information the goal of HB818 is to assist employees of small businesses to obtain health insurance much like their larger corporate counter parts.  This legislation accomplishes this by moving away from a system where employers subsidize the cost of a small-group plan to one where the employer can make defined contributions to an individual plan chosen by the employee that will effectively eliminate some of the administrative costs associated with providing health insurance and allow employers to better predict future costs. More importantly, it will allow employees to shop the market for the health insurance plan that best fits the needs of their families and keep that coverage even when moving to a new place of employment.

Another important change that the House included in this legislation allows employees to pay their insurance premiums with pre-tax dollars and all employees will be given the same federal and state tax advantages for the purchase of health insurance. While none of these bills by themselves will solve the health insurance problem totally, they each constitute a step toward helping improve health insurance for Missourians.

Of course, if this proposal turns out to be an effective means of providing health care in
Missouri it may set a precedent for other states to follow that negate the need for universal health care and the increase in taxes that would accompany it.

Tags: universal health care, missouri trial, tax breaks, jay wasson, health care legislation, employee purchased health insurance, new health care proposal