October 1 , 2007

Blunt Unveils Insure Missouri

This week, Gov. Matt Blunt announced his Insure Missouri initiative. It is designed to provide access to health insurance for uninsured Missourians.

The first phase of the program will be implemented in February 2008. Coverage would be offered to custodial parents with household incomes below the federal poverty level. The current federal poverty level for a family of four is $20,650. This first phase can become effective without further legislative approval. Individuals covered in this phase would not pay premiums but would have nominal co-payments.

A second phase would expand eligibility to include custodial parents and childless, nonelderly adults with household incomes not exceeding 185 percent of the federal poverty level. Enrollees would pay premiums and larger co-payments, which together would not exceed 5 percent of an enrollee's income. This phase would take effect in summer 2008 if legislators authorize the necessary funding.

The program's final phase is expected to be implemented by early 2009. It would provide reinsurance for high–cost claims to reduce and stabilize the cost for employers offering coverage to uninsured workers in firms with 25 or fewer employees. The income eligibility standards for the reinsurance benefit would be determined by the Missouri General Assembly but could be as high as 300 percent of the federal poverty level.

The program is anticipated to cover more than 54,000 people in its first phase, with the second phase expanding coverage to more than 130,000. Blunt projected that, when fully implemented, the program could reduce the ranks of the uninsured by nearly 200,000.

Blunt administration officials said coverage would be provided through private insurers. Funding for the program would come from several sources, including federal funds, hospital provider tax revenues, state general revenue and redirected funds that otherwise would have been used to pay hospitals for treating the uninsured.

As the Blunt administration developed the program's structure and financing, they consulted with the Missouri Hospital Association.

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