Health-coverage mandates pass, rates expected to rise

The Senate today approved a bill that is expected to increase the cost of health insurance by requiring insurance companies to cover a list of mental-health afflictions. Senate Bill 36 passed over largely Republican opposition.

“We’re worried about the rising cost and un-affordability of health insurance, and now we’re proposing a measure with huge potential for dramatically increasing the cost of health insurance,” said Sen. Shawn Mitchell, R-Broomfield. “It will make the problem of the uninsured worse.”

Mitchell added, “This is not a mandate on insurance companies, it is not a mandate on employers, it is a mandate on buyers. Passing this bill will make it less affordable, it will reduce the level of insurance coverage in our society.”

SB 36 adds to the list of mental disorders that insurance companies must cover without any restriction on the number of doctor’s visits or in-patient stays. As originally drafted, the bill included mandatory unlimited coverage for virtually the entire list of internationally recognized mental disorders, including pedophilia, fetishism, and narcissism.

“When you’re a young struggling family trying to decide whether or not to buy health insurance, you don’t want to be mandated by law to buy a fancier, more expensive product.” explained Mitchell “You want safety net coverage for your children, and you want to know that the broken bones will be covered.”

Insurance companies are currently required to offer unlimited coverage for physical ailments like broken bones and a short list of biologically-based mental disorders that are estimated to cover 85 percent of all mental-disorder diagnoses. That list includes depression, schizophrenia, and a few other common maladies.

Critics argued that the state’s Division of Insurance had reviewed SB 36 when it was introduced and determined that it would cause an increase in health insurance premiums. The revised measure would still raise premiums by expanding mandates, they said.

In its report, the Mandate Review Commission (in the Division of Insurance) not only projected a premium increase under the bill, as insurers are forced to cover the costs of treating additional ailments, but also argued that it could lead to fewer people having health insurance.

"... The number one reason why the uninsured do not have coverage is the perceived affordability of insurance and anything that raises premiums increases the chances that fewer employers will offer coverage and fewer employees will choose to enroll," the report found.