MEMORANDUM IN OPPOSITION
Bill: A.8301 ≠ An act to amend the insurance law, to prohibit the
exclusion or limitation of benefits for mental illness and chemical dependency
in certain health plans.
Mental Health Parity, also
known as Timothyπs Law, is an overbroad mandate that will further erode private
health insurance in New York and exacerbate the number of New Yorkers who have
no health insurance coverage. The Employer Alliance for Affordable Health
Care is a statewide 1,500-member coalition of employers. We
oppose this and all health insurance mandates that contribute to New Yorkπs
already high cost of health care for the following reasons:
I.
A growing number of WORKING UNINSURED. There are three million people uninsured in New York State, and 75
percent of these individuals work full or part time. Legislative mandates
exacerbate this problem by increasing the cost of health insurance premiums. A
2003 actuary study of ≥Mandated Health Insurance Benefits in New York State≤
concluded that legislative mandates are responsible for 12 percent of the
premium total on every full-insured policy sold in New York State ($445 for individuals and $1,066 for a family
policy). Passing A.8301 or any other mandate, will escalate premium costs even
further and drive even more people into the ranks of the uninsured.
II.
for many, obtaining affordable coverage is already a challenge. Companies that self-insure can keep the cost down
by not providing mandates services. Those who fully-insure lack that luxury. As
a result, most small business owners and sole proprietors have been forced to
absorb double-digit premium increases for five consecutive years. The
ability to purchase affordable health insurance for their employees and
families is the greatest single concern among small business owners and sole
proprietors in New York State. A
recent poll by the National Federation of Independent Businesses found that
this fear exceeds the long-time leading concern, business taxes.
III.
Treatments are already available when necessary. New York currently mandates compassionate coverage
for outpatient alcohol and substance abuse treatments and requires availability
of mental health benefits. Current
statute mandates 60-days outpatient visits annually for alcohol/substance abuse
treatments. All premium payers have access to additional coverage for mental
health services ≠ and most companies (more than 90%) ≠ particularly large firms
offer mental health and substance abuse coverage in their medical plans. The only reason why many employers
chose to limit mental
health coverage is cost.
For
these reasons, the employer alliance for affordable health care opposes passage
of A.8301.
-30-
Employer Alliance For Affordable Health Care
PO Box 1412
Albany, New York 12201-1412
(518) 462-2296
employeralliance@yahoo.com
www.employeralliance.com
Scott Miller, Chairman
6/2004
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