Number, cost of health care mandates could rise again

(March 17, 2006) One of the reasons health care costs are so high in Connecticut — and why more people can’t afford coverage — is that the legislature has mandated that more than 60 medical procedures and treatments be covered by health insurance providers.

While mandated coverage helps some people, their additional costs —often significant — are borne by all consumers of health insurance. And higher costs have been reducing access to health care in Connecticut for some time.

The number of mandates in Connecticut could go even higher, if lawmakers approve new mandates being considered by two legislative committees.

Mandates currently under consideration in the Public Health and Insurance committees include those for blood lead screening, radiological imaging and the extension of coverage for dependants to age 26.

In addition, the legislature is considering studying potential mandates for morbid obesity treatment (including gastric bypass surgery), prosthetics and diabetes.

The problem is that Connecticut already has the third-highest number of health insurance mandates in the United States and that together, mandates are increasing health care premiums here from 26% to 65%, according to America’s Health Insurance Plans and the Council for Affordable Health Insurance.

What’s more, says the council, health care mandates alone make health insurance unaffordable for one out of every four people.

With high costs pushing health care out of the reach of more people, lawmakers should focus on reducing health care costs rather than requiring everyone to foot the bill for more specialized treatment.

Connecticut’s economy needs to produce more jobs — and 75% of Connecticut businesses report that health care costs alone are weakening their ability to add employees to their workforce.

From a competitive standpoint, neighboring Rhode Island, New York and Massachusetts each have at least 20% fewer mandates than Connecticut. Many other states are reviewing their mandates for cost effectiveness.

A 2006 PriceWaterhouseCoopers study found that “existing state mandates … contribute to the cost of health benefits … [and that] the rise in the number of state mandate review commissions [is] indicative of the heightened attention being paid to the cost of mandates.”

Until Connecticut completes such a review, lawmakers should refrain from adding any new mandates or from expanding existing mandates.

For more information, contact CBIA’s Eric George at 860-244-1900 or georgee@cbia.com.