Prosthetics Bill Mandates Increased Insurance Costs

A Senate Commerce subcommittee met today to discuss the Senate Study Bill 1122 which would require employer provided health insurance to cover medically necessary prosthetic devices. The subcommittee members included Tom Rielly (D-Oskaloosa), Rich Olive (D-Story City), and David Hartsuch (R-Bettendorf).

Most employers’ insurance plans already provide some coverage for prosthetic devices, but this bill effectively eliminates the restrictions on what kinds of devices must be paid for. It is not a mandate for insurance companies to sell prosthetics but a mandate for employers to buy. The business community is under more pressure than ever before just struggling to stay open and keep the lights on let alone pay extra insurance on their employees. The debate is a public policy one whereby taking care of a few peoples’ interests must be weighed against employer ability to afford the insurance.

CSG proposes that a commission be established to evaluate insurance mandates and establish a limit on how many are allowed. This would help maintain affordability while the most medically necessary mandates will be in place. The commission would be responsible for deciding which mandates are the most important and cost effective and assign a value to each. If a new mandate is proposed, the commission would determine if its value is greater than one already in place. If so, the commission would replace the lowest valued mandate with the new one – instead of just adding it to the list.

Each new mandate – whether it be for prosthetics, diabetes, or in vitro fertilization – will have some compelling personal story behind it. But the emotional appeal must be balanced with the reality that the employer will have to bear the cost of it. The more mandates that must be paid for, the more the insurance will cost, and the less likely an employer will be to maintain that insurance coverage for his employees. Employers in Iowa currently have a choice of whether or not to provide insurance for their employees. Adding mandates to what is covered increases the cost of that insurance and the ultimate effect is that fewer people in Iowa will be insured because employers will not be able to afford the insurance.