Colorado Legislators Call for Timeout on New Mandates

Posted by Brian Schwartz in Colorado, Insurance Regulation on Dec 16th, 2009 | no responses

Remember, mandated benefits in insurance plans are hidden taxes. They force you to pay for benefits that you may not want or need, and effectively force you to subsidize other people’s insurance. From the Denver Business Journal:

Colorado businesses could get a one-year reprieve from new health-insurance coverage mandates that insurers say are driving up the costs of premiums in the state.

Reps. Kathleen Curry, D-Gunnison, and Ellen Roberts, R-Durango, are sponsoring a proposed bill to impose a one-year moratorium on any legislation that creates new insurance coverage requirements. Backed by insurers and insurance underwriters, the bill is slated to be introduced in the upcoming legislative session, which begins in January.

But the bipartisan proposal is expected to face resistance from ruling Democratic lawmakers who have already prepared new insurance mandates for 2010.

In recent years, special interest groups have pushed for legislation that requires insurers to pay for certain health care services that were considered “optional” or not covered by insurers. Among other things, lawmakers approved mandates that required insurers to cover educational services associated with autism, cervical cancer immunizations, certain mental illnesses and cancer screenings.

It’s heartening to know that Democrat legislators (not “lawmakers,” law differs from legislation) are planning to make yet more insurance plans illegal by requiring that legal plans cover certain benefits. It’s as if they required all cars to have the features of a loaded BMW, and then wonder why people cannot afford cars.