Coverage of 26 health benefits mandated under Massachusetts’ health insurance law account for 12 cents of every $1 paid for health insurance; statewide, the mandates cost about $1.3 billion annually, according to a report released July 7 by the state Division of Health Care Finance and Policy.
The report reviewed studies about the mandates and estimated that most of them were cost-effective. However, the report suggested that regulators consider removing several mandates that are not considered to be the standard of care, such as bone marrow transplants for breast cancer treatment. The report also found that five of the coverage mandates--maternity care, mental health, home health, pediatric preventive care, and infertility services--account for 80 percent of the total cost of mandated benefits. Excluding benefits mandated by federal law, the state’s mandates would cost up to $687 million annually, or roughly 6 cents of every $1 paid for health insurance, according to the report. Download the report.
