NCPA - National Center for Policy Analysis


July 10, 2008

State mandates are increasing the cost of health care in Massachusetts, according to a report by the Massachusetts Division of Health Care Finance and Policy.

Other major findings: 

  • Some 12 cents of every $1 paid for health insurance in Massachusetts goes toward 26 state-mandated benefits, from maternity and mental healthcare to infertility and diabetes services.
  • Statewide, the price tag for universal health care is $1.3 billion a year.
  • The report also noted that just five of the mandates -- maternity, mental health, home health, preventive care for children, and infertility services -- account for 80 percent of the total cost of the mandated benefits.

Insurers and small business groups said the findings show that mandates are helping to drive up costs, making coverage unaffordable as many businesses and workers struggle, says the Boston Globe.  The business groups said the mandates translate to roughly $1,300 annually per employee in a family healthcare plan. 

Source: Kay Lazar, "Policy Benefits That State Requires Cost $1.3b a Year," Boston Globe, July 8, 2008.


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