SB 1255 Establishes the reorganization of the state health care system
Sponsor: Dougherty
LR Number: 5508S.02I Fiscal Note:
Committee: Pensions, Veterans' Affairs and General Laws
Last Action: 3/9/2006 - Second Read and Referred S Pensions, Veterans' Affairs and General Laws Committee Journal Page: S448
Title: Calendar Position:
Effective Date: Emergency clause

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Current Bill Summary

SB 1255 - This act creates a new division in the Office of Administration called the Division of Community Health. The goal of the Division of Community Health will be to focus the purchasing power and streamline the administration of the state's health care purchasing. The Division will have a Board and a Commissioner. The Board will consist of eleven members. Two members will come from the General Assembly, one is director of the Department of Insurance, one is the director of the Office of Administration, and the others are representatives or directors from the various groups that are assimilated under the Division of Community Health.

The act requires the Board to submit a report to the General Assembly by December 31, 2006, providing an analysis of its duties and recommendations concerning personnel or any other topic. Next, on July 1, 2007, the act assimilates the health care programs of all state and state university workers as well as the Missouri Rx plan and the division of medical services into the Division of Community Health.

On December 1, 2007, seven new members will be added to the Board. The new members will be appointed by the Governor. One will be from the Missouri School Boards Association, one from the Missouri Community Colleges Association, one will be a representative of the public four year institutions of higher education, and two will be representatives of small business. A subsequent report will be due from the board on December 31, 2008, to update the prior report and provide any recommendations for implementation of the next phase of the program.

By July 1, 2008, the division shall be the lead agency to coordinate and implement the state Medicaid health care delivery system, until July 1, 2009, when the Medicaid program shall be assimilated with health care benefit plans for employees and their dependents of the public schools, community colleges, and political subdivisions of the state and health plans of small businesses as provided for in the act.

The next phase will be for the Division to make the purchasing power of the division available to the public schools, the community colleges, the public four year institutions of higher education, and the political subdivisions of the state as well as small businesses with less than 50 employees and uninsured citizens. Participation by these groups will be at their option.

Employees of any state entity which is absorbed by the Division will transfer directly to the Division, under the Office of Administration. Any appropriation to such entity for the purpose of health care as outlined in the act will be transferred to the Office of Administration for use by the Division.

This act provides that by June 30, 2007, the Division of Community Health shall submit a plan to the general assembly and to the Governor's office that would effectuate the goal of reducing the number of uninsured by fifty percent over five years. Such plan to meet the goal shall be put in place by June 30, 2009.

The rules and regulations and the rights under any contract of a prior entity will be assumed by the Division. The Office of Administration is authorized to promulgate rules to modify such prior rules and regulations.

This act also removes the June 30, 2008 Medicaid sunset provision.

This act contains an emergency clause.

This act is similar to SB 450 (2003).