Hundreds of state mandates nationwide require the provision of certain benefits or the coverage of certain providers for firms that make private health insurance available for their employees. Do these mandates address specific failures in the private insurance market, or do they reflect the political strength of certain provider groups, such as chiropractors and faith healers? Yes, mandated benefits often apply to the coverage of particular providers, such as chiropractors and psychologists the treatment of services, such as alcohol and drug abuse treatment, and the coverage of types of individuals, such as children with disabilities and terminated workers. Mandated benefits are important because they have recently evolved into a vary category of insurance regulation and because they can have some undesirable effects on the establishment of health insurance. Mandates may increase a firm's costs of offering group health insurance and consequently its costs of hiring labor. When insurance costs increase, employers may act in ways that attempt to avoid those higher costs. For example, a firm may choose to reduce workers' insurance benefits or relocate into non-mandated areas as a result, required workers to pay a larger share of the premium, reduced workers' wages or other fringe benefits …show more content…
Health care in the United States is approximately $3 trillion industry, accounting for nearly 18 percent of the gross domestic product, is up from 14 percent in 2000. In the aggregate, states spent roughly $199.2 billion of their own resources in 2013 on Medicaid health services. Medicaid spending accounted for 16.9 percent of all state-generated fund 4.7 percent more than in 2009. Government wants to create a sustainable health care system with people having a choice in the matter to purchase health insurance or not without the option of being penalizing by the government. They want to ride revenue by employers sponsored health benefit as a taxable income and to change tax exemptions by completed eliminated it. Policymakers think this would be a big step in promoting cost conscious behavior on the part of the consuming public responsibilities. The addition money would be spent on coverage for Medicaid participants those who are under the age