Tuesday, February 12, 2008

Insurance Mandates Continue to Grow

15 in Idaho, but 64 in Minnesota

Categories: Idaho, Insurance Regulation, Minnesota

The number of state mandated health benefits continues to grow -- to 1,961 nationwide, up from 1,901 last year, according to CAHI's annual list of health insurance mandates (PDF) in each state.

The report contains a chart of the mandates with information broken down by state into three categories: types of mandated benefits, providers, and covered populations.

Mandated benefits currently increase the cost of coverage from a little less than 20% to more than 50%, depending on the state and the specific legislative language. Minnesota leads the states with 64 mandates, while Idaho has the lowest at 15.

Fortunately, there is evidence that some legislators are getting CAHI's message. At least 30 states now require that a mandate's costs be assessed before it is implemented, and at least 10 states provide for mandate-light policies, which allow some individuals to purchase a policy with fewer mandates more tailored to their needs and financial situation. Bunce and Wieske further describe the study in a commentary in the Wall Street Journal.