MEMORANDUM IN OPPOSITION

Date: March 2010

Bill: A 6309-A (Johnson C, Thompson) / A 9787-A (Gunther)
Act to amend the insurance and public health law in relation health insurance coverage for prenatal vitamins.

The Employer Alliance for Affordable Health Care is a grassroots coalition of more than 3,000 sole proprietors and small and medium-sized business owners who represent more than 150,000 working New Yorkers. Our members believe that everyone should have access to basic, affordable health insurance. We oppose health insurance mandates that increase premium costs and decrease accessibility of basic, affordable health insurance. Bill A10450A seeks to require every health insurance policy that includes prescription drug coverage to include the cost of infant and baby formulas when prescribed by a physician as necessary for certain medical conditions.

WE OPPOSE THIS LEGISLATION FOR THE FOLLOWING REASONS:

• Health insurance mandates such as this increase the policy cost for people who fully insure which primarily impacts New York’s small business community. The cumulative impact of New York’s mandated benefit package currently stands at 14.2% of total premium costs, (Health Insurance Mandates in NYS, Nova Rest Consulting, May 2003/ Report by the Superintendent of Insurance On the Cost and Effectiveness of New York’s 2006 Mental Health Parity Legislation (“Timothy’s Law”), May 2009)
• Pharmaceutical costs are among the fastest rising component of health care expenses and most packages already cover some type of prenatal drug coverage. Forcing carriers to expand this type of coverage to include prenatal vitamins will ultimately decrease consumer accessibility by driving up the cost of prescription drug coverage.
• In 2007, New York enacted funding and implementing legislation to create the Health Care Quality and Cost Containment Commission – a body established to study the financial and medical impact of coverage mandates prior to passage. To date this commission has yet to be seated and operational. The consideration of this any new mandate proposals should be prohibited until the commission is seated and operational.

For these reasons, the Employer Alliance for Affordable Health Care asks you to oppose this legislation.

The Employer Alliance for Affordable Health Care is a coalition of more than 3,400 employers and individuals from across New York, representing more than 200,000 working New Yorkers, committed to preserving quality affordable health care.