State Mandates

One of the real problems of our current health care system is state mandates. When states require health insurance plans to cover ABC and XYZ, and does not allow insurance companies to offer scaled back plans, consumers are denied more affordable options. It seems ludicrous that a woman who has no intention of ever becoming pregnant is required to have a plan which covers neonatal care. Yet, the House health care reform bill does not do away with state mandates.

“Insofar as a State requires a health insurance issuer offering health insurance coverage to include benefits beyond the essential benefits package, such requirement shall continue to apply to an Exchange-participating health benefit plan . . .” (p. 87) There is a provision that the state would have to agree to pay a reimbursement which would go toward low-income individuals who would be eligible for “affordability premium credits”, but will that be enough of a deterrent to cause the states to reverse the crazy mandates?

If the state does not reverse the mandate, the consumer would lose doubly. Not only will he be forced to pay for mandated coverage he doesn’t need or want, he’ll have to pay yet another hidden tax in the form of state payments to the Commissioner to cover the “affordability premium credits”.

Additionally, the legislation itself mandates maternity care, mental health coverage and substance abuse care, items which some people would gladly elect to forego in return for lower premiums. But these consumers will suffer the burden of higher than necessary premiums as well as increased taxes caused by the funding of this program.