A new health insurance mandate moving through the Legislature puts Alabama small business owners at risk for higher health insurance premiums.
House Bill 284, sponsored by Rep. Jim Patterson, passed the House on a 100-0 vote and would mandate that insurance companies provide coverage for behavioral therapy for the treatment of autism spectrum disorders. Although the measure had no limits on benefits or costs when originally introduced, when HB 284 passed the House Insurance committee, amendments were added that place caps on coverage/costs, introduce a provision that would end coverage if premiums rise beyond 1 percent, and add a mandate to include coverage for Medicaid-eligible children.
The Medicaid mandate, as well as its associated costs, are causing confusion since coverage of these therapies is already required for Medicaid by federal law, AL.com reports. Alabama’s Medicaid program is currently noncompliant, state officials are in settlement negotiations about it, and $11 million from the Education Trust Fund budget has been allocated to the Department of Mental Health to cover this therapy.
Meanwhile, the estimated cost of the autism therapy mandate ranges from $48 million up to $336 million annually, but the fiscal note for Medicaid mandate was not included during floor debate. These mandates increase the cost of healthcare premiums, expand copays and deductibles, and NFIB/AL members have repeatedly voted to oppose such requirements.
HB 284 now heads to the Senate, but it had not been assigned to a committee at this writing.
