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How Do State Mandated Benefits Work For Low Cost Health Insurance?

By Cathy Wilson Posted in Health Insurance News

Legislation across the country has seen a number of mandated benefit laws enacted requiring private health benefit contracts to provide costly benefits. Although most of the legislation has been on the state level, the federal government has also placed mandated benefits on many health plans. Some of these mandated benefits include services provided by particular types of health providers such as optometrists and chiropractors as well as the inclusion of particular types of diagnostic or treatment services that include mammography, MRIs or other inpatient or outpatient hospital care treatments.

Rising Cost of Premiums

The recent spate of state legislative mandated health insurance plan benefits has caused a significant rise in policy premiums affecting the availability of low-cost health insurance. This is created a backlash of many different organizations spearheading the move to have these mandated laws repealed or at least revisited. Although many special interest groups and organizations were at the forefront lobbying for the creation of mandated benefit laws, there are groups opposed to these cost producing pieces of state legislation. There is a push on by many employer and insurance companies in an attempt to limit the number of mandated benefit laws that are passed at either the state or federal levels.

Reform Is Needed

The action is underway to at least play some assessment about premiums cost increases as part of the process of examining the enactment of a mandated benefit law. Also, action is being taken to eliminate if not reduce required coverage for particular services. A call for having policyholders selecting this type of coverage is believed to be at least part of the solution decreasing the cost and liability exposure that mandated benefit laws place upon insurance companies and employers.

Consumers should realize across the board mandated benefits will result in higher cost insurance premiums.

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3. What Is A State Children’s Health Insurance Plan?
4. What Health Insurance Do Senators And Other Congress People Have?
5. What Does The Term Out Of Plan Mean For Low Cost Health Insurance?