MEMORANDUM IN OPPOSITION

Date: June 16, 2010
Bill:Bill: A2188 (Ball)/ S628 – (Sampson)

Requires coverage for the cost of enteral formulas for which a physician has issued a written order and which are medically necessary for the treatment of eosinophilic esophagitis and related eosinophilic disorders.

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. We believe that everyone should have access to basic, affordable health insurance and oppose health insurance mandates that increase premium costs and decrease accessibility of basic, affordable health insurance.

Many of New York’s small businesses are being forced to drop coverage due to increasing premium costs. The Legislature should refrain from this, or any type of action that could, potentially, exacerbate costs even more, especially this type of treatment, when medically necessary, is already covered by most private health insurance. We oppose A2188/ S628 for the following reasons:

• Health insurance premiums continue to rise higher than the rate of inflation. From 2000- 2006, premiums for New York workers rose 5.5 times more quickly than the median earnings (Premiums vs. Paychecks October 2006, Families USA)
• The cumulative cost of New York’s current mandates stands currently at 14.2% of total annual premiums. (Health Insurance Mandates in New York State 2003/NovaRest Consulting and Report by the Superintendent of Insurance on the Cost and Effectiveness of New York’s 2006 Mental Health Parity Legislation).
• Prescription drug coverage is currently one of the most costly components of private health insurance, increasing premiums between 3% and 5%. (Health Insurance Mandates in the States 2009, Council for Affordable Health Insurance.
• Since 1997, New York State has required health insurance carriers to cover the cost of amino- acid based formulas which have a direct annual impact on premiums ranging from $3-$10 (Health Insurance Mandates in NYS, Nova Rest Consulting, May 2003).
• The Health Care Quality and Cost Containment Commission, established in 2007, is not yet operational. Lawmakers should refrain from any decisions could impact premium costs and let this commission do the job it was intended. First and foremost, this commission MUST be seated and operational.

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.