SB 460 - This act eliminates the requirement that individual and small group health insurance policies provide coverage for certain health insurance mandates. This act also eliminates a marketing restriction on insurance companies.

This act establishes the Mandated Benefit Review Commission within the Department of Insurance. The Commission will be comprised of the Director of the Department of Insurance, the Director of the Department of Health, 4 members of the General Assembly (2 Senate/2 House - nonvoting advisory capacity), and 6 individuals appointed by the governor with the advice and consent of the Senate (2 health insurance purchasers, 2 employers (small and large), and 2 employees who pay a percentage of their employer sponsored health insurance. The Commission must be established by October 1, 2003.

Once the Commission has been established, it must review all existing state mandated benefits and issue a report to the General Assembly by the tenth legislative day in January 2005. The report shall discuss the projected costs of all state and federal mandates and the Commission shall recommend to the General Assembly which mandated benefits should be repealed from state law.

The Commission shall also review all mandated benefits proposed by member of the General Assembly. Whenever a bill containing a mandated benefit is proposed, the committee having jurisdiction over the proposal shall determine whether the committee favors the proposed mandate or not. If the Committee is in favor of the mandate, the Committee may refer the matter to the Commission for its review. The Committee must review the proposed mandate and issue a report to the committee. The report must contain the social impact of mandating the benefit, the financial impact of mandating the benefit, the medical efficacy of mandating the benefit, and the effects of balancing the social, economic and medical efficacy considerations. Once a review and evaluation of the mandated benefit has been made by the Commission, the committee shall review the Commission's findings.

Under this act, no mandated health benefit shall be enacted into law prior to January 1, 2006. After that date, no proposed mandate may be enacted into law unless the commission has reviewed and evaluated the mandate.

This act is identical to HB 193 (2003) and is similar to provisions contained in SB 1063 (2002).
STEPHEN WITTE