Mandates driving up prices
Mandated benefits are driving up the cost of health insurance and pricing poor people out of the market, often for benefits only a small percentage of recipients use, experts told legislators during a Capitol Hill briefing in late February.
Mandated benefits from chiropractors, naturopaths, and services including acupuncture and in vitro fertilization are among the benefits driving up costs when won by special interest groups in state legislatures, says Merrill Matthews, vice president of the National Center for Policy Analysis (NCPA) in Washington, DC.
Matthews says studies in six states have found that mandated coverage accounts for 7% to 21% of all insurance claims. One study found that mandated coverage increases insurance premiums by 6% to 8% for substance abuse, 10% to 13% for outpatient mental health care, and 21% for psychiatric hospital care for employee dependents.
He quoted one estimate that claimed the mandates priced one of every four uninsured persons out of the market. In 1965, there were only seven state-mandated benefits. Since then, states have imposed nearly 1,000 insurance mandates, the NCPA says. Congress has enacted two federal mandates: a minimum two-day hospital stay for childbirth and the requirement to cover mental health care to the same limit as physical health care.
You have reached your article limit for the month. Subscribe now to access this article plus other member-only content.
- Award-winning Medical Content
- Latest Advances & Development in Medicine
- Unbiased Content