• Brass-Tacks
  • The Burden of Health Insurance Mandates on Businesses

    This is part two of a two-part response addressing concerns about proposed trends within this Legislative Assembly. The discussion was initiated by a letter from GNDC's CEO and President, Arik Spencer.

    GNDC can’t remember a legislative session where we haven’t stood up to oppose a healthcare mandate being introduced. Health insurance mandates are proposed with good intentions to address specific needs or expand coverage. However, these mandates impose significant challenges on businesses, especially small employers. Each new mandate adds complexity and cost to providing health insurance, inflating healthcare costs across the board.
     
    Mandates burden businesses with administrative red tape, diverting resources from core operations. For small businesses with limited capacity, these challenges can be particularly severe. Even more crucial, mandates drive up premiums. While a single mandate may only increase costs slightly, the cumulative impact can be substantial. For instance, a 2% increase from one mandate might seem minor, but several combined could lead to a 20% or higher increase, forcing businesses to make tough decisions about coverage. These mandates never go away, driving up costs year after year – especially when combined with every session’s mandates.
     
    Proposed mandates, like expanding coverage for vitamin D testing, reproduction services, insulin, or diagnostic screenings, highlight the issue. These services may already be accessible with existing coverage or medical necessity. Mandating broader coverage inflates costs for all businesses without improving access for those who genuinely need care.
     
    Proposed legislation often promises broad coverage but applies only to specific insurance pools, leaving many plans exempt. This creates false promises and an uneven system, burdening targeted groups without delivering the universal solutions implied.
     
    Legislators, you must carefully weigh the consequences of mandates. GNDC firmly opposes these mandates, advocating instead for free-market solutions. Businesses are best equipped to tailor benefits to their employees’ needs.
     
    We understand that these are real situations with severity for those impacted. However, we want to ensure the system of a whole. We are sympathetic to the issue and individuals – but we are working to ensure a solution for most and many. Our members told us, very clearly in fact, that the number one thing that state government could do to help business – make healthcare more affordable. This is a complex issue, but here’s the first step on this path – stop the mandates.
     
    PROPOSED MANDATE BILLS THIS SESSION:
    HB 1114: Insulin
    HB 1282: Fertility Health Benefits
    HB 1283: Diagnostic breast examinations
    HB 1284: Fertility preservation health benefits
    HB 1452: Antiobesity medication
    SB 2248: Step therapy
    SB 2249: Step therapy 

    SEE PART ONE (WSI) HERE