GOVERNMENT MANDATES

Government mandates in Health Care are designed, ostensibly, to protect the public by offering quality coverage. The effect of every mandate is inflationary. By requiring coverages in health plans, the cost rises.

In 2010, the State of Arizona, issued 33 new mandates. In one sense it is a regulatory device to create a government insurance funded by private companies. In other words the Insurance Companies issue plans that the Government tells them to create.

As the new Health Care law slowly comes into effect, we are starting to see the effects of these mandates. There will be required coverage that use to previously be optional. Business owners will be required to provide benefits that were previously optional. Medical tests that used to be a shared expense will now be paid 100% by the Insurance Plan.

At the same time, it seems that the Constitution protects individual rights so that individuals cannot be required to purchase Insurance. My little brain says that this will allow the healthy to not purchase insurance until they need it. Imagine if your car insurance company only insured people with claims. Your rates would multiply.

Simple math says that if an average auto claim were $3,000 and only people with claims paid premiums, they would have to pay $3,000 per year for their coverage. There is NO insurance here. People without claims have to purchase the product to create the pool that lowers cost.

This is a very serious issue when it comes the HealthCare because it often concerns life and death situations. We have a system that is very seriously damaged. People need protection from the large costs of medical care. It must be affordable.

This is where mandates come in to the discussion. Each time we hear about mandates, the basic cost of Health Care Premiums has increased. As one person stated:

“Mandating benefits is like saying to someone in the market for a new car, if you can’t afford a Cadillac loaded with options, you have to walk.”

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