Committee backs reinstating bariatric surgery coverage for state health plan

Senator Rice won committee approval for Senate Bill 87, which would reinstate coverage of diagnosis and treatment for morbid obesity — including bariatric surgery — under the state and public school life and health insurance program.

Rice told the committee the bill is informed by prior pilot work and consultant review and said the program focuses on ensuring the "right people with the right diagnosis" receive treatment. Rice cited a pilot that funded approximately $3,000,000 a year and told the committee that consultants and testimony indicate long-term savings in the range of "35 to 45%" for certain populations when correctly diagnosed and treated. Rice also referred to a doctor's testimony saying surgery can result in diabetes remission in roughly 60% of appropriate cases.

The measure authorizes the state board of finance, with legislative council approval, to discontinue the program or institute an annual expenditure cap if needed to ensure the program’s financial soundness and allows promulgation of rules to implement the bill.

Senator Teague asked whether the bill would make access "easier or harder"; Rice replied the bill would be easier for patients with the correct diagnosis and emphasized long-term health and cost benefits. No public testimony was offered. Senator Teague moved for a do-pass recommendation, Senator Ingram seconded, and the committee approved SB87 by voice vote.

The committee’s endorsement advances SB87 for additional consideration, subject to any later administrative rulemaking and oversight by the board of finance and legislative council.