No more unfunded health care mandates for small businesses

Local restaurants and other small businesses are the backbone of Long Island's economy, community and way of life. Our local businesses are as varied as delicatessens, construction firms, agribusinesses, print shops, and dance studios. They comprise a small business community of more than 90,000 here on the Island alone. These local, often family-run restaurants and businesses employ hundreds of thousands of people. This community on Long Island is resilient. It has to be.

Last summer, a National Federation of Independent Business report showed that the cost of health care was at the top of local business struggles for the 38th consecutive year. Unfortunately, for most of us paying attention, this was no surprise.

Inflation affects all of us, but for Long Island’s local businesses, these difficulties are compounded by the fact that health care inflation for our employees and businesses continues to grow at a much greater rate than the rest of the economy. Since 2000, the price of medical care — including services provided by hospitals, as well as drugs, and medical equipment — has increased by 121.3%. Prices for all other consumer goods and services rose by 86.1% over the same time.

While small business owners are focused on running our businesses, we are keenly aware of the reasons for these steep increases. Several studies have concluded that hospital and provider consolidation into multistate corporate hospital systems, and the rapidly increasing costs of hospital reimbursement, have been the chief drivers of cost increases in health care. Other factors include New York’s hidden health care taxes and legislative mandates, which add billions to the cost of health care and, subsequently, the cost of health insurance coverage.

With more than 70 unfunded mandated benefits on health insurance already in law, requiring coverage of more than three dozen types of treatments or services, New York has one of the most extensive lists of health insurance mandates of any state in the nation. In the current legislative session, more than 90 such bills have been introduced, each of which would increase the cost of health coverage. These include new mandates on things like specific drug coverage or changes in out-of-network rules that would undermine the cost-saving benefits of health insurance networks. These services, screenings or treatments are often already covered, but the proposed mandates go far beyond evidence-based guidelines of national health organizations. So far, more than two dozen bills have been reported out of committee; some have already been passed by at least one chamber.

Gov. Kathy Hochul and members of the State Legislature have spoken often about affordability. With only days left in this year’s legislative session, we expect the annual marathon of passing hundreds of bills in the final days of session. The legislature must recognize that the collective impact of these mandated benefits adds to the cost of insurance, and New York already has the highest average premiums in the lower 48 states. Now is the time for the legislature and governor to get serious about health care affordability in the state.

Long Islanders deserve quality health care at affordable prices. Should the legislature and Gov. Hochul continue to ignore this affordability crisis and spend the rest of this session passing more expensive health insurance mandates, they will be doing a huge disservice to our local restaurants, businesses and the hundreds of thousands of Long Islanders who depend on them.

This guest essay reflects the views of Kevin Dugan, director of government affairs for the New York State Restaurant Association.