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Key Findings

1. State lawmakers impose costly mandates on all insurance policies, regardless of whether or not they serve the medical needs of patients.

2. The Affordable Care Act, or Obamacare, added ten “essential” mandates on top of those imposed by the states.

3. Altogether, Washington residents must pay for 57 mandates, each of which adds between 0.2 to 2.5 percent to the cost of insurance.

4. An analogy in the auto market would be a state law that forces everyone to buy a Lexus, when most people simply want a Toyota or a Ford.

5. SB 5637 would allow Washington residents to buy affordable coverage, free of mandates imposed by the state.

6. Even if Congress does not repeal all ten mandates imposed by Obamacare, SB 5637 would still give Washington residents more health insurance choices at lower costs.

7. SB 5637 is good public policy because it would show respect for the health care choices made by patients, and it would make health coverage more accessible to working families buying in the individual and small group markets.

Introduction

For many years, Washington state lawmakers have required that insurance companies include multiple benefit and provider mandates in every health insurance plan sold in the individual and small group markets. These mandated insurance provisions are required by law, regardless of whether it serves the medical needs of patients.

 Each mandate raises the premium cost of an insurance plan by a varying amount. Mandates can seem reasonable, yet not everyone wants or needs each of the mandates. For example, why should an unmarried 30 year-old man be forced to pay for obstetrical coverage in his health insurance plan?