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[Billing Codes: 4120-01-P; 4830-01-P; 4510-29-P] - page 26 / 83





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costs. CBO estimated that inpatient hospital days would increase by approximately 400,000 days

and follow-up care would increase by approximately 200,000 visits annually.

CBO estimated that the additional utilization due to the implementation of S. 969 would

have resulted in an aggregate increase in insured costs of 0.06 percent for all employment-based

and individually purchased health plans. CBO assumed that, in response to the increase in

premiums, employers and individuals may choose to reduce coverage or drop benefits. Although

some plans may make slight reductions in overall benefits to offset this minimal increase in cost,

the Departments believe that virtually no employers will drop health coverage entirely or drop

coverage for hospital stays in connection with childbirth. After taking behavioral responses into

account, CBO estimated that employer contributions for health insurance would only rise by

about 0.02 percent and most of that increase likely would be passed back to employees in the

form of reduced wages.

Applying the same 0.06 percent increase to the cost of health insurance for covered

employees of nonfederal governmental plans would raise expenditures. However, CBO assumed

that most of these costs would be passed back to employees.

Apart from increased benefit costs for their employees, States may face additional costs

for enforcing NMHPA’s requirements on issuers of health insurance in the group and individual

markets. Because States currently regulate the private-sector health insurance market, CBO

assumed that the increase in costs would be marginal. However, in cases where States fail to

implement NMHPA or their own laws meeting the criteria specified in NMHPA, the federal

government assumes enforcement authority. Depending on the need for federal enforcement,

some of the aforementioned costs may be shifted to the federal government.


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