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Senator Sheila Kuehl Chair, Senate Health State Capitol, Room 5108 Sacramento, CA 95814 Dear Senator Kuehl, I OPPOSE AB 1887 (Beall), because it will increase health care premiums by mandating that health plans and insurers provide parity coverage for all of the over 400 mental disorders identified in the latest Diagnostic and Statistical Manual of Mental Disorders. This bill is substantially similar to AB 423 (Beall) of last year, which was vetoed by the Governor. Health plans and insurers currently provide coverage for a number of mental illnesses, and enrollees have options available to choose coverage to meet their needs. According to the analysis of the bill by the California Health Benefits Review Program, AB 1887 (Beall) is estimated to increase health care premiums by over $100 million annually. While well intentioned, I believe that AB 1887 (Beall) would further exacerbate the problem of rising health care costs. While this bill may only minimally increase health care premiums, this increase cannot be viewed in isolation. The current health care system in California is already riddled with benefit mandates requiring health plans to provide certain benefits and services. These mandates have reduced health plans flexibility in benefit design, increased health care costs and premium rates thereby reducing employers’ choice of benefit packages to offer their employees and contributing to the need for health care reform today. Benefit mandates make insurance less affordable, resulting in an increased number of uninsured.

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