Businesses large and small in Rhode
Island are worried. Not only has the recession knocked the
stuffing out of them, the truth is that the slowdown in economic
activity is persisting here much longer and harder than in neighboring
states. Our employers have had fewer customers coming in the door
and when they do come, they have been spending less. Each
owner or manager has had to look through every expenditure and
operation and find efficiencies. Too many are surviving, but not
thriving.
Each year about this time they get the quote for their health insurance
coverage and each year it worries them more. Ominously,
this year I have heard several managers worry that they will have to
lay off workers because their insurance costs are climbing too
steeply. With increases of 15% to 22% they simply
can’t squeeze the additional cash out of their budget
anymore.
This is bad news for an unemployment rate that is persistently in the
10-11% range. It is disastrous news for folks struggling to
find a new job and pay their mortgage. We are going in the
wrong direction. Our employers need some relief and they need it
now.
Rhode Island health insurance has the dubious distinction of containing
the largest number of mandates in the country. That’s
right; we’re Number 1. But this is the wrong list to
be first on. We have 70. The national average is
43. Obviously, to insure the health and well-being of our
citizens, core services are indispensible. There is a basic
package of medical services and treatments that must be provided to
keep us well and heal us. However, the legislature has gone
far beyond that basic package and added coverages that, while nice, are
not necessarily essential. When benefits were added to the
list, we heard the argument that they only added a little bit to every
premium. However, each one adds cost. While most add 1% or
less, invitro fertilization alone adds 3-5% to our health insurance
premiums. Unfortunately, as we well know, pennies become dollars,
and dollars grow into serious cash. And now those premiums
are affecting the health of business and government budgets. They
are causing layoffs and cuts in service.
We understand that each mandate has developed a constituency; people
who use it and like to have the free services. But the question
has to be asked, is it ‘nice’ to have or vital to our
citizens’ health? We can’t strangle our job market with
‘nice’ any longer. We no longer have that choice.
With the imposition of the Affordable Care Act it is even more critical
that we act to slim down our list of mandates to an essential
package. First, the ACA removes all spending limits that
might currently be placed on a mandate. Conceivably, a
patient could opt to indefinitely repeat an optional treatment like
smoking cessation or invitro fertilization treatments, regardless of
success or failure. Of even more concern is that in 2014
the federal government is expected to release a federal
package. Any mandates that we have in excess of the federal
list will be the financial responsibility of our state. With a list
that has 27 more than the average, what’s your guess that we will
have extra? Those benefits will not be eligible for federal
subsidies. Taxes would explode to cover the costs.
Many think that the Supreme Court will overturn the Affordable Care
Act. We can’t count on that and even if they do, with
our job climate presently in the basement, we need to get serious about
making it easier for companies to come here, to grow here and to thrive
here.
An easy, short term answer to soaring healthcare costs is to reduce the
number of mandates. That’s why we introduced a bill to
create a commission that would devise a package of essential health
benefits. Let’s cut the fluff, construct a core of
vital services and go from number 1 to average. In this
case middle of the pack is where we want to be. Our
existing businesses will have a breather. It will help each and
every one of us by cutting our personal healthcare premium, as
well. Reducing our mandates from number one to the national
average could reduce our premiums by 10 to 15%.
That’s a huge weight off each of us and off of our economy. Companies looking to relocate will take notice.
(Patricia L. Morgan is the Republican State Representative from District 26, West Warwick, Coventry, Warwick.)
|
LEGISLATIVE INFO
