Requires health care service plans and health insurers to provide coverage up to $1,000 for hearing aids to all enrollees, subscribers, and insureds under 18 years of age. Provides that the coverage would not apply to certain types of insurance.
CMTA's Position: Oppose Veto request letter to Gov. Schwarzenegger
September 8, 2004
Dear Governor Schwarzenegger:
The California Manufacturers and Technology Association (CMTA) are opposed to SB 1158 (Scott) and request that you veto the bill. SB 1158 would impose a mandated benefit on employer health plans that would increase cost.
SB 1158 would increase health plan cost because it restricts employer's ability to designed health care plans that are affordable for employers and tailored to the needs of their employees. One of the few remaining means of controlling health care cost is to negotiate health plan coverage and payment rates with HMOs, PPO, etc., within their closed systems. The bill negates the cost containment in these plans by requiring that the plan provide the benefit and would not be subject to negotiation.
A good example is the bill would require health care service plans to provide coverage up to $1,000 for hearing aids to all enrollees, subscribers and insured under18 years of age. Employer's current health plans may provide hearing aids but restrict the dollar amount and the number of hearing aids available under the plan. As a result, most enrollees are very selective in choosing a hearing aid that meets their need because they must also consider their cost and the hearing aid longevity in making the decision. CMTA believes that SB 1158 would increase employers health plans cost significantly because of the mandatory $1000 contribution and the ability to replace the hearing aid every 36 months at no cost to the enrollee. With no co-pay or other disincentive, it is very likely that this benefit will be fully utilized by enrollees.
It is important to note that here are almost 6 million working Californians who are currently without health insurance and with a slowing economy, that number is expected to grow. Study after study confirms that the greatest barrier to health care coverage in the private sector is cost and this bill would exacerbate the problem. Many employers are simply unable to provide health care benefits for their employees due to cost and this bill could force some employers to drop employee health care plans altogether.
Moreover, SB 1158 would provide an expensive benefit for employees who already have health care coverage that will make health insurance more costly and less affordable for other employers and uninsured Californians.
For these reasons, CMTA is opposed to SB 1158 and we request that you Veto the bill.
Sincerely,
Jack M. Stewart
President
CMTA staff information CMTA lobbyist: Willie Washington
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