The Missouri Senate has passed Senate Bill 79 (SB 79), a measure that would allow certain qualified organizations to offer health care benefit plans exempt from federal and state regulations, provided they meet specific notification requirements.
According to an AM Best report, the bill defines qualified organizations as entities, including farm bureaus, with at least 100,000 dues-paying members and $500 million in assets. These organizations would be required to register with the state and pay a $250 fee for a five-year registration. The funds collected would go into an insurance-dedicated fund.
Under SB 79, the health care benefit contracts provided by these organizations must include notifications stating that the plans are not health insurance, offer fewer benefits than ACA-compliant plans, and may exclude coverage for preexisting conditions.
The plans must also inform policyholders that they are not covered by the state’s guaranty association and that policyholders would be responsible for any medical costs not covered by the plan. The bill also prohibits marketing or advertising these contracts as insurance.
Although SB 79 exempts these plans from certain state and federal health insurance laws, it requires coverage for ambulance services, hospitalizations, emergency services, and lab work. Additionally, the plans must have an annual coverage limit of at least $2 million, and applicants must be members of the organization for at least 30 days before qualifying.
The bill also mandates an annual fee for plan providers, equal to 1% of claims paid in the previous year, due by March 31. These fees would also contribute to the insurance-dedicated fund.
The bill's sponsors have not provided comment and attempts to reach the Missouri Insurance Coalition have been unsuccessful.
SB 79 is part of ongoing efforts to reshape healthcare access in Missouri. A substitute version of the bill, which includes provisions to expand telehealth access, was adopted by the Senate on March 25, 2025.
The bill received final approval in the Senate on March 27, 2025, and is now under consideration in the Missouri House of Representatives. If passed, the law would take effect on August 28, 2025.
