Some state lawmakers in the NC General Assembly House of Representatives have filed legislation to disclose the cost of health insurance mandates on employers and taxpayers, arguing such mandates and “rising healthcare costs in North Carolina place a significant financial burden on individuals, families, employers, and taxpayers, greatly contribute to inflation, and make it increasingly difficult for residents to access essential healthcare services.”
House Bill 46, filed this week by Rep. Kyle Hall, R-Forsyth, acknowledges North Carolina’s unenviable status as the nation’s most expensive healthcare market, identifying one culprit in the form of government-mandated health insurance requirements that lead to higher premiums and undue financial strain on individuals, large and small employers, and the State Health Plan.
What’s more, the bill would require any new health insurance mandate legislation “also contain at least one provision that repeals at least the same number of health benefit mandates that are already in effect […].”
Further, under the proposal, any piece of legislation containing one or more health benefit mandates is required to appropriate funds in the amount of the cost of that mandate to the Department of the State Treasurer and the State Health Plan.
The introduction to the bill highlights the nonsensical nature of health benefit mandates that don’t match an individuals actual health needs, such as maternity coverage for male policyholders, for example.
“[M]any consumers in North Carolina are forced to pay for health insurance coverage they neither need nor use as a result of government-mandated benefits that do not align with their personal healthcare needs or preference,” the bill reads.
Brian Balfour, senior vice president for research at the John Locke Foundation, told Carolina Journal that this legislation is a step in the right direction to reduce healthcare costs in North Carolina.
“One of the many government interventions into healthcare that drives up costs is government-mandated insurance benefits,” says Balfour. “Such laws require health insurance plans to cover certain medical services, treatments, or conditions, regardless of whether or not a customer needs or wants that coverage. North Carolina imposes dozens of such mandates, helping to contribute to North Carolina being ranked by recent studies as having the most expensive healthcare of any state.”
Balfour specifically emphasized the one-for-one mandate repeal provision that, in effect, would cap the number of total mandates on the books.
“This is a significant step in the right direction toward reigning in insurance premiums, the next step being a reduction in the total number of mandates and offering consumers more affordable choices,” he concluded.
Joining Hall as primary co-sponsors of the bill include Reps. Donny Lambeth, R-Forsyth; Erin Paré, R-Wake; and, Allen Chesser, R-Nash. The bill has been referred to the House Rules Committee for consideration as of Wednesday.
A companion bill in the NC Senate, SB24, is also scheduled for committee hearings this week. Follow Carolina Journal for more.