Committee hears bill to let sole proprietors buy group health plans; members debate thresholds and federal implications

Representative Mike Jones introduced House Bill 2465 to amend Missouri statute so sole proprietors and single‑member businesses have increased flexibility to purchase group health coverage outside the ACA exchange. Jones said neighboring states (for example, Kansas) already allow similar approaches and that the change would make Missouri more competitive and reduce costs for small employers forced into the individual market.

Jones proposed a House committee substitute to change numeric thresholds: he said he would seek language to treat a sole proprietor as eligible to form a group (changing the statutory '2' to '1' in certain provisions) and to consider adjustments to the cap on eligible employees (the bill text currently references a limit of 50). Several committee members expressed support for the idea in principle but warned of federal implications tied to the 50‑employee threshold and urged careful drafting to avoid conflict with federal law.

Witnesses included small‑business owners and brokers who said group options could lower premiums or restore access to benefits for many sole proprietors. John Davis and James Lyon described their personal experiences shopping for coverage and the limitations of existing options; Lyon urged that the statute should not discriminate against single‑member entities and noted the large number of sole proprietorships in Missouri. Committee members suggested technical refinements and flagged existing programs (chamber plans, Farm Bureau plans) that may overlap with the bill.

The committee did not vote; members signaled willingness to work with the sponsor on numeric thresholds and to consult the insurance committee or counsel on federal preemption and subsidy effects before marking up the bill.