California Health Mandates Could Increase State Costs

California has 53 health insurance mandates that require specific benefits to be covered in health insurance plans that are offered in California. There are more mandate bills coming in 2012 as well.

The Affordable Care Act states that each State must offer a "minimum" set of health benefits in the plans that are offered in the Exchanges. However, the ACA says that if the state mandates additional benefit levels, then the state is responsible to pay for those additional benefits. The net result of this is that Californian's will either face higher insurance costs when 2014 rolls around because the only plans offered will have rich benefit levels, or the State will have to figure out how to generate more revenue to be able to pay for the extra benefits for every citizen in the health insurance plans.

Stay tuned for more.

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