Relief From Health Insurance Mandates in New York
Issue Overview: Health insurance benefits mandated by the Legislature cost small businesses annually more than $1,000 per employee. Individual policyholders currently pay $445 and family policyholders pay $1,066 extra every year just to cover state mandates. These policies affect the ability of our small businesses to provide health insurance to their employees and their families, and place the future of employment-based health insurance at risk.
Studies show that for every 1 percent hike in premium, up to 30,000 people are priced out of insurance. Currently, more than 30 different benefits are mandated in New York, and every year dozens more are proposed and legislation is passed without any objective study to determine their true cost. The resulting higher premiums are making the cost of health insurance simply unaffordable for too many.
A mandate review commission would conduct a comprehensive cost/benefit analysis of all currently mandated benefits, and proposed mandates before they are passed. This will give the Legislature an opportunity to study their affect on the cost of health insurance for businesses and individuals.
NFIB Position: We supported the creation of a Health Insurance Mandate Review Commission. Mandated benefits have been a major driver in the increasing cost of health insurance. The mandate review commission would not only provide a badly needed check on new mandates, but would also take a critical look at the impact of existing mandates. The resulting relief will benefit both businesses and individuals struggling with the high cost of health insurance.
Issue Status: Our members scored a big win last year with the creation of the New York State Health Care Quality and Cost Containment Commission, which is charged with analyzing the impact on health-insurance costs of proposed legislation that mandates health benefits be offered or made available in individual and group health-insurance policies, contracts and comprehensive health service plans. The commission will also study the delivery of health benefits or services and the reimbursement of health care providers. On the recommendation of Senate Majority Leader Joseph L. Bruno, former Gov. Eliot Spitzer named NFIB/New York State Director Mike Elmendorf to serve on this Commission. The Commission has yet to meet, as other appointments are yet to be finalized. We are urging that the appointments process be expedited and that the Legislature refrain from enacting any additional mandates until the Commission is constituted and functioning.
