An Act amending the act of May 15, 1933 (P.L.565, No.111), known as the Department of Banking and Securities Code, providing for building underserved communities; and imposing duties on the Department of Banking and Securities.

2025-2026 Regular Session Introduced by Anthony Bellmon and 15 co-sponsors

Missouri bill lets active state employees opt out of MCHCP coverage and receive a taxable annual stipend equal to 50% of the employee's state contribution, excluding dependents.

Referred to Commerce

Summary — HB 1833 (Missouri): Opt‑Out Stipend for Missouri Consolidated Health Care Plan

Purpose
- HB 1833 creates a statutory option (new RSMo §103.087) allowing eligible active state employees who would otherwise receive a state contribution toward health insurance under the Missouri Consolidated Health Care Plan (MCHCP) to decline that coverage and instead receive an annual cash stipend.

Key provisions
- Eligibility: Applies only to active employees who are eligible for a state contribution toward MCHCP coverage.
- Election windows:
- Within 31 days of hire: employee may elect to opt out if they show current coverage under a separate health plan; election takes effect for the remainder of the calendar year.
- During board-established open enrollment: employee may elect to opt out for the following calendar year, provided they show proof they will be covered by a separate plan at or before the start of that year.
- Stipend amount: Annual stipend equals 50% of the amount the state would have paid as its contribution for the individual employee for the relevant calendar year. State contributions for spouse or dependents are excluded from the calculation.
- Proration: If the opt‑out period is less than a full calendar year, the stipend is prorated.
- Taxation: The stipend is treated as taxable income from state employment.
- Scope limits: The opt‑out/stipend does not apply to dental or vision benefit coverage.
- Administrative requirements: Election must be made on a board form and accompanied by proof of separate health insurance.

Who would be affected
- Directly affected: Active state employees eligible for MCHCP employer contributions who already have (or will obtain) alternative health insurance and choose to opt out.
- Indirectly affected:
- MCHCP enrollment and risk pool composition (potential reduction in covered members).
- State budget — reduced state premium contributions for opting employees offset by stipend payments; net fiscal impact depends on participation and stipend calculation relative to employer share.
- Plan administration — verification of alternate coverage and prorating calculations will create additional administrative tasks.

Potential impacts and considerations
- Savings vs. costs: Because the stipend equals half of the state contribution for the employee only, the measure may lower state outlays if many employees forego coverage, but it could shift costs to employees (taxable stipend, loss of plan benefits) and change premium risk pools.
- Coverage continuity: Requirement for proof of other coverage aims to limit uninsured employees but may exclude employees between plans.
- Equity: Employees who cover dependents receive no additional stipend for those family members (state contribution for dependents is not included).
- Implementation: Board must provide forms, verify alternative coverage, manage prorations, and treat stipend payments for payroll/tax purposes.

Procedural status (as provided)
- Introduced: January 14, 2025.
- The version supplied would add RSMo §103.087 establishing the opt‑out/stipend structure.
- Note: Materials supplied with the bill text also include items from other states’ HB 1833 versions; the summary above reflects the Missouri RSMo §103.087 language contained in the provided text.