By Lev Ginsburg is the executive director of the New York State Conference of Blue Cross and Blue Shield Plans (NYSCOP)
As the dust settles on another protracted budget cycle in Albany, a familiar legislative activity is beginning in earnest. Legislators, having finished the state’s spending plan, are now turning their attention to the post-budget legislative session. For those of us who pay close attention to healthcare, this period could be named “mandate season.”
Dozens of bills are currently moving through committees, each promising to expand coverage for a specific treatment, drug or service. When we look at the sheer volume of these proposed requirements, each with its own price tag, the picture changes from one of enhanced care to one of ever-eroding affordability.
New York is already a national leader in the sheer number of state-imposed insurance mandates. As of this year, the state imposes over 70 distinct mandates on private insurance plans. Every time a new mandate is signed into law, it adds to the price of coverage for all of us. The cumulative effect of so many mandates is staggering.
The timing of this legislative push could not be worse. New Yorkers are currently weathering a perfect storm of rising hospital prices and pharmaceutical costs, both of which are far outpacing wage growth. This is in addition to the fact that New York already levies billions in taxes on health insurance through the Health Care Reform Act (HCRA), now at $7.1 billion annually, tacked on to your premium bill.
The New York State Conference of Blue Cross and Blue Shield Plans has been clear: New Yorkers are facing a real-time affordability crisis. When a mandate is passed, the cost doesn’t vanish, it is shifted directly onto the policyholder. This translates to higher monthly premiums, increased out-of-pocket costs and less flexibility in what plans you can purchase.
As lawmakers debate these dozens of bills in the coming weeks, we should demand that they consider whether New York families can really afford another premium hike. Instead, the Legislature should focus on addressing the root causes of healthcare cost inflation: hospital system consolidation, the soaring prices of providers and incredibly expensive prescription drugs.
Let’s insist that Albany trades “mandate season” for a new season of healthcare affordability.