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Reeves vetoes health insurance bills that experts, watchdogs say would help consumers

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Reeves vetoes health insurance bills that experts, watchdogs say would help consumers

Gov. Tate Reeves last week axed two health care bills that passed the Legislature with bipartisan support and that health experts say could improve health care.

Senate Bill 2622 would have sped up the prior authorization process, which insurance companies use to tell providers whether a drug or procedure is covered for certain patients. Reeves said while the bill itself was a “good idea,” he referred vaguely to mistakes in its language, including that administrative hearings were in “an incorrect place in the bill” and what he said would be increased costs for Medicaid as his reasons for vetoing.

Senate Bill 2224 would have given State Insurance Commissioner Mike Chaney the authority to study and address inequalities in insurance reimbursement rates, which Reeves said was a “bad idea.” The commissioner would be able to fine insurance companies up to $10,000 per violation if they’re unable to justify unequal reimbursement rates for different hospitals for the same procedures.

“It allows us to put some sunshine and open transparency on Blue Cross Blue Shield,” Chaney said. “We’re trying to figure out where all the money goes. They say, ‘We don’t have to tell you that.’”

This became a major issue last year when the University of Mississippi Medical Center, the state’s largest hospital and only children’s hospital and organ transplant center, went out of network with Blue Cross, the state’s largest private insurer. The dispute between the two stemmed from the insurance company’s reimbursement rates.

State Insurance Commissioner Mike Chaney addresses the audience in the pavilion at Founders Square at the Neshoba County Fair. on July 27, 2016, in Philadelphia, Miss.

Blue Cross did not respond to multiple requests for comment.

In his veto messages, Reeves said he believes the bills would increase the cost of health care.

When asked whether the governor had data to back up his claims, Reeves’ press secretary Shelby Wilcher said his understanding that the bills would increase health care costs is rooted in “basic economics.”

“If the cost to provide the service increases, such increases (sic) will be passed along to the consumer,” she said. “The bills contained numerous costly additional burdens, heavy fines, and mechanisms for forced rate increases that would all have an inflationary effect on health insurance.”

It is unclear how the bill that would speed up the prior authorization process would increase costs.

Tim Moore, executive director of the Mississippi Hospital Association, is still confused about Reeves’ claim.

“Where is the data that supports the claim of higher health care costs? I do not see that,” he said. “Interesting that it is two health care related bills that are the first to be vetoed.”

Chaney last year advocated on behalf of consumers when UMMC went out of network with Blue Cross. He said it’s always been his job to monitor the equity of reimbursement rates to providers and its effect on consumers, and this bill would’ve given the commissioner’s office more teeth in its ability to regulate companies.

“I should say that the governor’s veto is a very bad idea because it hurts consumers and health care providers,” he said.

This bill would have allowed Chaney to enact rules and regulations and gather data about how insurance companies reimburse different providers for different services, which is currently not easily accessible or equitable, and study how consumers are treated based on their plans.

Chaney said Blue Cross reimburses providers in Tennessee at higher rates, despite consumers in Mississippi paying comparable premiums.

“BCBS administers those premiums and those policies in Mississippi at lower reimbursement rates,” he said. “Blue Cross won’t give us that information. It’s that simple.”

A study by consulting group Milliman estimates that Mississippi is reimbursed on average at the lowest rate in the country by commercial insurers compared to Medicare.

In addition, consumer experts say Blue Cross in Mississippi has the financial means to pass savings on to consumers but has not. A Mississippi Today investigation last year found that the company has accumulated far more than what regulators require, and perhaps the largest such surplus by percentage of any Blue Cross company in the country at about $750 million.

As for mistakes in SB 2622, Reeves’ inability to name more than one specific error concerns Angela Ladner, executive director of the Mississippi Psychiatric Association and Mississippi Oncology Society.

“When you say there’s a mistake, you need to be really specific about what you’re talking about,” she said. “As far as content, I’m not sure that there were a lot of mistakes. I think the Department of Insurance worked significantly hard to make sure that the bill was in a format that everybody agreed upon, and that’s why they passed it.”

And despite being passed overwhelmingly by the House and Senate, it is unclear if the Legislature will attempt to override the vetoes, which would take two-thirds majorities in both chambers.

Sen. Hob Bryan, a Democrat who represents Amory and chairs the public health committee, said he was not aware of any override attempts and that he could not understand why the governor vetoed the bills.

Leah Smith, a spokesperson for Lt. Gov. Delbert Hosemann, who leads the Senate, said Monday that his office continues to review the veto messages.

A spokesperson for House Speaker Philip Gunn did not answer questions for this story.

Wilcher said via email that the governor’s office is hopeful that the Legislature can come up with an improved version of the prior authorization bill.

“This is unfortunately the victim of a strong lobby by health plans and insurance companies that are saving money on the backs of the patients that they’re supposed to be serving,” Ladner said.

In 2022, the most recent year for which data is available, Blue Cross spent a total of $82,000 on lobbying.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippi Stories Videos

Mississippi Stories: Michael May of Lazy Acres

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mississippitoday.org – rlake – 2025-01-21 14:51:00

In this episode of Mississippi Stories, Mississippi Today Editor-at-Large Marshall Ramsey takes a trip to Lazy Acres. In 1980, Lazy Acres Christmas tree farm was founded in Chunky, Mississippi by Raburn and Shirley May. Twenty-one years later, Michael and Cathy May purchased Lazy Acres. Today, the farm has grown into a multi seasonal business offering a Bunny Patch at Easter, Pumpkin Patch in the fall, Christmas trees and an spectacular Christmas light show.  It’s also a masterclass in family business entrepreneurship and agricultural tourism.

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This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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On this day in 1921

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mississippitoday.org – Jerry Mitchell – 2025-01-21 07:00:00

Jan. 21, 1921

George Washington Carver Credit: Wikipedia

George Washington Carver became one of the first Black experts to testify before Congress. 

His unlikely road to Washington began after his birth in Missouri, just before the Civil War ended. When he was a week old, he and his mother and his sister were kidnapped by night raiders. The slaveholder hired a man to track them down, but the only one the man could locate was George, and the slaveholder exchanged a race horse for George’s safe return. George and his brother were raised by the slaveholder and his wife. 

The couple taught them to read and write. George wound up attending a school for Black children 10 miles away and later tried to attend Highland University in Kansas, only to get turned away because of the color of his skin. Then he attended Simpson College in Indianola, Iowa, before becoming the first Black student at what is now Iowa State University, where he received a Master’s of Science degree and became the first Black faculty member. 

Booker T. Washington then invited Carver to head the Tuskegee Institute’s Agriculture Department, where he found new uses for peanuts, sweet potatoes, soybeans and other crops. 

In the past, segregation would have barred Carver’s testimony before Congress, but white peanut farmers, desperate to convince lawmakers about the need for a tariff on peanuts because of cheap Chinese imports, believed Carver could captivate them — and captivate he did, detailing how the nut could be transformed into candy, milk, livestock feed, even ink. 

“I have just begun with the peanut,” he told lawmakers. 

Impressed, they passed the Fordney-McCumber Tariff of 1922. 

In addition to this work, Carver promoted racial harmony. From 1923 to 1933, he traveled to white Southern colleges for the Commission on Interracial Cooperation. Time magazine referred to him as a “Black Leonardo,” and he died in 1943. 

That same year, the George Washington Carver Monument complex, the first national park honoring a Black American, was founded in Joplin, Missouri.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Legislative recap: 2025 tax cut battle has been joined

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mississippitoday.org – Geoff Pender – 2025-01-20 12:00:00

After relatively brief debate and questioning given its magnitude, the state House passed the first meaningful legislation of the new session: House Bill 1, a measure that would eliminate the state income tax, trim taxes on non-prepared food and raise sales and gasoline taxes.

It would mark a sea change in state tax structure, a shift from income to consumption taxation.

“We are at a place where we can finally tell the hard-working people of Mississippi we can eliminate the tax on work,” House Ways and Means Chairman Trey Lamar, HB1’s author, told his colleagues.

The measure passed the House 88-24. It gained some Democratic support in the supermajority Republican House, with nine Democrats voting in favor, 24 against and 12 voting present.

The proposal garnered some bipartisan support because it includes at least a couple of items Democratic lawmakers have championed in the past: A gasoline tax to help fix crumbling roadways, and a reduction in the “grocery” tax, or the sales tax levied on unprepared food, of which Mississippi has the highest overall rate in the nation.

It still met with some Democratic opposition in part because it is a sea change toward more “regressive” taxation. Proponents say this is just, people should pay more for state services they use, such as roadways, and for things they buy as opposed to taxing income. Opponents say this places a proportionately higher tax burden on people of modest means.

“I would say the people hurt the most with this would be working people who have to put gas in their car to go to work or those who have to purchase materials to do a job,” House Democratic Leader Robert Johnson said.

Beyond that concern, opponents or skeptics worry that the foundation of the proposed tax overhaul would be built on shifting sands — a state economy that has been so rosy primarily from the federal government dumping billions of dollars in pandemic spending into Mississippi. With the federal spigot being cut off, some worry, the state economy could slump, and the massive tax cuts in this new plan could provide a state budget crisis, of which Mississippi has much experience, and underfunding of crucial services such as schools, roads, health care and law enforcement.

The largest hurdle Republican House leaders face in seeing their tax plan through to law is not in garnering bipartisan support. It’s internecine disagreement with the Senate Republican leadership, which still appears to harbor abovementioned concerns about overhauling tax structure in uncertain economic times and betting on growth to cover massive tax cuts.

Senate leaders have said they want to enact more tax cuts, but their plan has not yet been released. Lt. Gov. Delbert Hosemann has provided some details of what he wants to see, but it would appear he wants a more cautious approach on cuts. He has not publicly opined on the tax increases in the House plan.


“Have you ever worn a belt and suspenders, lady? It’s a belt and suspenders approach.” — Rep. Trey Lamar, R-Senatobia, to Rep. Omeria Scott, D-Laurel, during floor debate on Lamar’s bill to eliminate the state income tax and raise other taxes.

“No. I have not worn a belt and suspenders. I don’t know anyone who has worn a belt and suspenders,” Scott replied.

House will renew push to legalize mobile sports betting

House Gaming Committee Chairman Casey Eure, R-Saucier, told Mississippi Today he plans on taking another crack at legalizing mobile sports betting in the state. In 2024, the House and Senate passed versions of legislation to permit online sports betting, but never agreed on a final proposal. Some lawmakers raised concerns that gambling platforms would have no incentive to partner with smaller casinos, and most of the money would instead flow to the Mississippi Gulf Coast’s already bustling casinos. Proponents say legalization would undercut the influence of illicit offshore sports betting platforms.

“I’ve been working on this bill for many years and I’m just trying to satisfy any concerns that the Senate may have so we can pass this and start collecting the tax dollars that the state deserves and not allowing everyone to place bets with these offshore accounts,” Eure said. “I feel like the state is losing between $40-$80 million a year in tax revenue.”

Sports wagering has been permitted in the state for years, but online betting has remained illegal amid fears the move could harm the bottom line of the state’s brick-and-mortar casinos. Mobile sports betting is legal in 30 states and Washington, D.C.,  according to the American Gaming Association. — Michael Goldberg


Hosemann makes Senate committee chair changes

Republican Lt. Gov. Delbert Hosemann last week named new chairmen of committees, after former state Sen. Jenifer Branning was sworn into office as a new justice on the Mississippi Supreme Court. 

Sen. Chuck Younger, a Republican from Columbus, previously led the Senate Agriculture Committee and will replace Branning as chairman of the Transportation Committee. Sen. Neil Whaley, a Republican from Potts Camp, previously led the Senate Wildlife, Fisheries and Parks Committee, but will now lead the Senate Agriculture Committee. 

Here are the other changes to Senate committees: 

Sen. Ben Suber, a Republican from Bruce, will be the new chairman of the Senate Wildlife, Fisheries and Parks Committee 

Sen. Bart Williams, a Republican from Starkville, is the new chairman of the Senate Public Property Committee

Sen. Scott DeLano, a Republican from Gulfport, will lead the Senate Technology Committee 

Sen. Robin Robinson, a Republican from Laurel, will chair the Senate Labor Committee 

Sen. Angela Turner Ford, a Democrat from West Point, will lead the Senate Drug Policy Committee.  — Taylor Vance


What’s in a name? Democratic Rep. Scott hopes GOP majority will pass ‘Donald J. Trump Act’ bills

Perhaps tired of seeing many measures she authors ignored or shot down in flames by the Republican supermajority in the Mississippi Legislature, Democratic Rep. Omeria Scott of Laurel is trying a new strategy: naming bills after Republican President-elect Trump.

For this session, Scott has authored: House Bill 61, the “Donald J. Trump Voting Rights Restoration Act;” House Bill 62, the “Donald J. Trump Ban-The-Box Act … to prohibit public employers from using criminal history as a bar to employment;” and House Bill 249, the “Donald J. Trump Early Voting Act.” — Geoff Pender


More bills filed to criminalize abortion

Since the 2022 Dobbs Supreme Court decision overturned the constitutional right to an abortion, Mississippi lawmakers have proposed bills to criminalize workarounds to the state’s strict abortion ban – including criminalizing the abortion pill and out-of-state abortions. The 2025 legislative session is no exception. 

Rep. William Tracy Arnold, R-Booneville, filed House Bill 616 that would make it a felony to manufacture or make accessible medication abortion. Anyone convicted of the crime would be subject to a fine between $1,000 and $5,000, as well as imprisonment between two and five years. Last year, about 250 Mississippians each month requested medication abortion from Aid Access, the only online telemedicine service supplying medication abortion via mail in the U.S. 

Helping a minor receive an abortion would also be criminalized under House Bill 148 filed by Rep. Mark Tullos, R-Raleigh. That would include transporting a minor out of state to undergo an abortion, as well as helping a minor procure a medication abortion – both of which would be punishable by not less than 20 years in prison or a fine of not less than $50,000. — Sophia Paffenroth


$1.1 billion

The estimated net annual cost of the House plan to eliminate the state income tax and raise sales taxes, once fully phased in. Proponents say economic growth would allow the state budget, currently about $7 billion a year, to absorb the cut. Eliminating the income tax would cost the state $2.2 billion in revenue, but the House plan would raise about $1.1 billion in other taxes in offset.

0

The amount of income tax Mississippians would pay after a 10-year phased in elimination of the state income tax. With previous cuts being phased in, state income taxes next year will already be reduced to 4%, among the lowest rates in the nation.

8.5 %

The new Mississippi sales tax, up from current 7%, under the House tax plan assuming most local governments would not opt out of adding a new 1.5% local sales tax.

13 cents more a gallon

The cost of the House’s proposed new 5% gasoline tax, based on last week’s average cost of gasoline in Mississippi of $2.62. The new 5% tax would be on top of the flat 18.4 cents a gallon current state excise on gasoline.

4%

The tax on unprepared food once a reduction of the current 7% would be phased in over a decade under the House plan. The state would over time reduce its sales tax on such groceries to 2.5%, but local governments would add a 1.5% sales tax to such items unless they opt out.

Lawmakers must pass new legislation to improve access to prenatal care

Lawmakers will file another bill this session to help low-income pregnant women get into the doctor earlier – after the federal government rejected the program set up under last year’s law, because of discrepancies between what was written into state law and federal regulations for presumptive Medicaid eligibility. Read the story.


Proposal: eliminate income tax, add 5% tax on gas, allow cities, counties to levy local sales tax

House leaders last week unveiled a sweeping tax cut proposal that would eventually abolish the state income tax, slash taxes on groceries, increase local sales taxes and shore up funds for state and local road work. Read the story.


A new Mississippi law aims to limit jailing people awaiting mental health treatment. Is it working?

Officials say a new law to decrease the number of people being jailed solely because they need mental health treatment has led to fewer people with serious mental illness detained in jails – but the data is contradictory and incomplete. Lawmakers plan legislation to make more counties report the data. Read the story.


How soon we forget: Mississippi House push for record tax cuts revives fear of repeat budget crises

Eight years ago, from a combination of dozens of tax cuts the Legislature approved and a slumping economy, the state saw a budget crisis that resulted in severely underfunded schools, government layoffs, a near halt to building new roads and highways and problems maintaining the ones we have, too few state troopers on the highways and cuts to most major state services. Read the story.


NAACP legislative redistricting proposal pits two pairs of senators against each other

The Mississippi chapter of the ACLU has submitted a proposal to the courts to redraw the state’s legislative districts that creates two new majority-Black Senate districts and pits two pairs of incumbent senators against one another. Read the story.


Legislation to send more public money to private schools appears stalled as lawmakers consider other changes

Some top lawmakers in Mississippi’s Republican-controlled Legislature are prepared to make it easier for students to transfer between public schools but remain skeptical of sending more public money to private schools. Read the story.


House passes $1.1 billion income tax elimination-gas and sales tax increase plan in bipartisan vote

A bill that phases out the state income tax, cuts the state grocery tax and raises sales taxes and gasoline taxes passed the House of Representatives with a bipartisan vote on Thursday. Read the story.


Tate Reeves and other top Mississippi Republicans owe thanks to President Joe Biden

The tremendous cash surpluses that some state Republicans cite when defending their plan to eliminate the state’s income tax would not exist if not for the billions of dollars in federal funds that have been pumped into the state during Biden’s presidential tenure. Read the story.


Podcast: Mississippi transportation director discusses proposed new gasoline tax

Mississippi Department of Transportation Director Brad White tells Mississippi Today’s Geoff Pender and Taylor Vance he’s staying “in his lane” and out of the politics of a House tax overhaul that would eliminate the income tax and raise sales and gasoline taxes, but that he’s pleased lawmakers are trying to address the long running need for a steady new stream of money to help cover highway maintenance needs. Listen to the podcast.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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