NEW YORK: Business Group Criticizes Proposed HMO Reforms
A report released yesterday by the Business Council of New York State, Inc. concludes that proposed managed care reforms before the state Legislature would increase health care costs by billions of dollars and cause thousands to go without insurance. The report, prepared by the council-affiliated Public Policy Institute, commends the managed care industry's cost-effectiveness, which it says allows an estimated 200,000 to 300,000 New Yorkers to maintain coverage. The report determines that the state cannot afford the higher-priced health care that would come with HMO reforms. It notes that New York has the third-highest health care costs in the nation, which are 22% above the national average.
Protecting Existing Coverage
According to the report, HMO liability and coverage mandates being debated in the Legislature would ultimately drive up costs and limit the number of employers who can provide coverage. The report emphasizes that the state should "make it possible for more private employers to provide coverage for their employees" instead of enacting new mandates. It recommends that legislators create a "foundation" health plan that would provide basic coverage at lower premiums. The Public Policy Institute's report, titled "Managing With Care," is available online at www.bcnys.org (Business Council release, 5/5).