Mandated Benefits

In recent years, federal and state lawmakers have enacted legislation requiring health insurance plans to cover specific conditions (e.g., infertility and mental health parity), specific services (e.g., acupuncture and clinical trials), or access to specific types of providers (e.g., chiropractors).

NAIFA Health & Employee Benefits believes insurers should be allowed to offer low-cost, basic benefit packages which are exempt from costly benefit mandates. Basic benefit policies should be structured to keep premiums low. A basic benefit package can be designed with specific benefits or specific cost coverage. Lawmakers should allow development of consumer choice health plans that encompass a variety of approaches to health care financing designed to improve consumer awareness of the costs and quality of their care. Research has suggested that higher cost sharing along with identity of cost and quality of care reduces spending— particularly when compared to plans offering free care—with little or no adverse effects on health.