One of the most important issues for business – particularly small business – is the affordability of healthcare insurance and the ability for Nevadans to obtain quality medical services. In a recent study, healthcare insurance was identified as the number one issue facing most businesses. Members of both the Las Vegas Chamber of Commerce and Reno-Sparks Chamber of Commerce are saying the same thing. It is not surprising, considering that the costs to businesses of providing healthcare insurance to their employees has risen every year.
According to data compiled by Nevadans for Affordable Healthcare, since 1998, private employer spending on health benefits increased 51 percent. These increases have a direct impact on a company’s bottom line. As health costs continue to rise, many small businesses can no longer afford to provide this valuable employee benefit. In fact, based on U.S. Census data, Nevada ranks sixth nationally in the number of uninsured adults between the ages of 18 and 65. Roughly one in four adults in Nevada do not have health insurance. This is considerably higher than the national average of a little more than 15 percent.
Business has a vital interest in keeping our workforce healthy. Providing healthcare insurance to employees not only provides workers valuable security for themselves and their families, but it is also a valuable recruitment tool that helps businesses attract the very best employees.
This year, the Nevada State Legislature is considering several pieces of legislation that, if passed, will affect healthcare coverage in our state. A primary reason for the increase in premium costs is due to mandated benefits. Each session, the Legislature considers mandating additional tests or screenings that must be offered in insurance policies. While we may all agree that prostate cancer screening is important, should a company be required to have that coverage plan for your 23-year-old female employee? Each mandate the state places on insurance providers translates to more expensive health insurance for business, and as costs continue to rise, so does the likelihood that many businesses will be economically forced to drop their coverage.
According to a national study by the Government Accountability Office in 2004, Nevada is one of only seven states that have 30 or more mandates applicable to small group and individual healthcare markets. Maryland, the state with the most mandated benefits, has found costs associated with benefit mandates made up roughly 14 percent of total costs.
These insurance mandates, although appealing on the surface, are pricing many companies out of the marketplace, and the result is more and more Nevadans are not protected by healthcare insurance. Imagine if the only car you were allowed to purchase was a luxury car with all the bells and whistles. How many people would be able to afford that?
So far this year, the Legislature is considering two more mandated benefits, including Senate Bill 29, which would require coverage of clinical trails for Phase I cancer treatments. In addition, Assembly Bill 63 would force insurance providers to cover injuries sustained while under the influence of drugs or alcohol. It would also eliminate the right of insurance companies to cancel a policy based on these injuries. Both of these bills, if passed, would continue to drive up the costs of healthcare insurance for everyone.
For years, the Reno-Sparks and Las Vegas chambers have brought the issue of mandated benefits to the attention of the Legislature. We will continue to fight for a 10-year moratorium on new benefits and to work to expose the true costs of these mandates in Nevada.
There is also pending legislation that would alleviate the healthcare crisis in Nevada. Assembly Majority Leader Barbara Buckley is proposing to leverage millions in federal dollars to provide health insurance subsidies for low-income workers and pregnant women. This would help provide coverage to some of Nevada’s most vulnerable citizens. The Reno-Sparks and Las Vegas chambers support Buckley in her efforts.
In addition, Governor Guinn is proposing $100 million in mental health spending. Mental health has reached a crisis point in Southern Nevada. One of the issues surrounding this urgent situation is that it drives up the cost of and access to healthcare for everyone else. Many mentally ill patients are first admitted to a hospital emergency room, and they remain in emergency care until a bed opens up in a treatment facility. This causes emergency room beds to be filled, forcing patients with real emergency injuries, such as a broken arm, to wait for care. It also drives up the costs for everyone, as emergency room beds are among the most expensive beds in a hospital and have to be factored into the overall cost of treatment.
As we move forward this legislative session, the Las Vegas Chamber of Commerce and Reno-Sparks Chamber of Commerce remain committed to fighting for healthcare reform that reduces the costs to business and benefits all working Nevadans.
