Health Insurance Articles
State Mandated Benefits And How They Influence Health Insurance Coverage And Costs
2010-05-17
State insurance law is one of the most important factors at play in the total cost of a health insurance policy, and the way that a given policy operates and protects a consumer. Many states require, or mandate, certain types of coverage for certain citizens. These mandates are extremely controversial, but nonetheless critically important, and it's important to understand how they work and how they're intended to function. Generally, mandates require all health insurance companies to provide minimal amounts of coverage to all of their customers or all of their customers that fall into certain groups. These groups may include students, citizens under or over a certain age, or other designations.
For many states, health coverage mandates have been used as a way to insure people that couldn't otherwise afford health insurance. College student health care is one common example. By forcing insurers to provide college student health care, states help students to avoid a lapse in coverage that could prove disastrous later in their careers. These laws also serve as a form of financial aid, lowering the overall cost of getting a college degree by taking the cost of health insurance out of the equation. Mandates work similarly for other groups of people, and they're introduced by lawmakers for a variety of reasons.
Opponents of health insurance mandates point to the economic principles of supply and demand, and claim that mandates push up the cost of health insurance coverage by artificially inflating demand (or, conversely, by severely restricting the price setting ability of health insurance companies). Supporters of mandates feel that they're a necessary part of standard insurance laws that help all citizens afford a decent and necessary amount of health insurance. They often make the case that health insurance policy holders don't see any immediate benefit from buying larger amounts of health insurance and may try to cut costs while in college or when in a certain age group, which can defeat the purpose of health care coverage. Regardless of which side has it right, health mandates are introduced by various states every year, and most states now have at least some form of mandate.
To understand how mandates affect you, look into your state's insurance law. You might even want to call your state's insurance office to see if you qualify for any of your state's mandates, and you'll certainly want to speak to your insurer to make sure that you're receiving the state required minimum amounts of coverage. Understanding mandates will help you understand your policy in general, and you'll be able to make more educated decisions about health coverage.
