ALEXANDRIA, VA – Today, the Council for Affordable Health Insurance (CAHI) released an updated version of its Health Insurance Mandates in the States . This 2005 edition, by CAHI Research and Policy Director Victoria C. Bunce and State Affairs Director J.P. Wieske, builds upon last year’s report which identified the health insurance mandates in each state. This edition also estimates how much each mandate adds to the cost of a health insurance policy. Currently there are 1,825 mandates across America.

“At a time when health insurance premiums have been going up significantly each year, CAHI wants state elected officials -- and even members of Congress -- to know that mandates are one of the primary reasons for the escalating costs,” stated CAHI Director Dr. Merrill Matthews.

A health insurance mandate is a requirement that an insurance company or health plan cover specific health care providers, benefits or patient populations. In order to make a general assessment of the cost of each mandate, CAHI put together an actuarial working group, made up of several well-respected actuaries. The actuaries’ job was to estimate how much each mandate would affect the cost of a basic, mandate-free health insurance policy. Four cost estimates were chosen: <1%, 1-3%, 3-5%, and 5-10%. While some mandates tend to be more expensive than others, the cost is usually determined by the specific legislative language.

Even though most mandates increase prices by less than 1%, once all the mandates in a state are totaled – about 40 for most states, but Minnesota has 62 – they can quickly increase the price of a policy and make it too expensive for people to afford coverage.

“CAHI wants to ensure that state legislators -- who are the ones responsible for this cost explosion -- are aware of exactly what they have done to the cost and availability of health insurance. We hope it will encourage them to restrain themselves from exacerbating the problem. Maybe they will even remove some of the mandates or give consumers the ability to opt for mandate-free policies,” concluded Matthews.

For a copy of Health Insurance Mandates in the States or to schedule an interview with CAHI Research and Policy Director Victoria C. Bunce or CAHI State Affairs Director J.P. Wieske, contact Tom Gardner, director of communications, at (703) 836-6200 x386 or tgardner@cahi.org.

Founded in 1992, CAHI is a non-profit research and advocacy association whose mission is to develop and promote free market solutions to America's health care challenges. CAHI’s membership includes health insurance companies (active in the individual, small group, HSA and senior markets), small businesses, physicians, actuaries and insurance brokers.

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