ABI Statement Regarding Governor Culver’s Proposal for Mandating Expanded Mental Health and Substance Abuse Insurance
For Immediate Release
September 9, 2010
Contact: Mike Ralston, President
What Governor Culver is proposing will move Iowa from the mainstream to the extreme in mandating Iowans to purchase mental health and substance abuse insurance. Mandating that every Iowan purchase insurance for themselves or their employees with broad coverage for mental health and substance abuse will conservatively increase the cost of that insurance by 5%.
Governor Culver has stated, “we’re dealing with a severe recession, the likes of which we haven’t seen since the great depression.” During a time of record unemployment and an unpredictable future is NOT the time to burden our small businesses and families with increased health insurance costs.
According to a recent survey completed by David P. Lind and Associates, the average increase for health insurance experienced by Iowa businesses this year was 13%. This mandate would raise those costs another 5% or more based on the impact of similar mandates in other states.
According the US Census data, Iowa ranks among the top 5 in the nation for having the least number of uninsured. As mandates make health insurance more expensive, employers may find it increasingly more difficult to provide both health insurance and a paycheck to their employees.
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