HEALTH CARE MANDATES

State and federal efforts to mandate that employers and health insurers cover certain diseases or conditions are well intended, but add significantly to the cost of providing health insurance. In fact, a study by PricewaterhouseCoopers estimates that the costs associated with state and federal mandates and regulation make up 15 percent of the increase in health care costs.  And when costs go up, employers have increased difficulty in providing health care coverage. The number of Americans who are uninsured rose to more than 47 million in 2006, largely because small employers eliminated employer sponsored health coverage for workers. In 2007, employers endured another year of increases in the cost of providing medical benefits; premiums rose by 6.1 percent in 2007 and are expected to increase again in 2008.  The increase in employer costs translates to pared-back coverage and increased co-pays and deductibles for workers – with more to come. According to a 2007 survey by the Kaiser Family Foundation, many employers said they expect to make significant changes to their health plans and benefits in 2008, with 21 percent of firms saying they are “very likely” to raise workers’ premium contribution this year.  Because of this environment, even mandates that purport to minimally increase costs can have a significant impact.