Pat McCrory says on his website, and repeats on the campaign trail, the statistic that North Carolina’s insurance mandates “increase insurance premiums by more than 41 percent.”
Where does he get those numbers? From the Council for Affordable Health Insurance.
CAHI estimates that each of the mandates in NC adds 1 percent or less to the price of insurance premiums. So McCrory adds up the total number of mandates to get his nifty statistic.
But here’s what one of the authors of the report, JP Wieske, says in a comment to one of our previous posts about adding up the numbers:
Additionally, if you have looked at our whole report, you’ll find we caution against adding up the numbers. In fact, you’ll find the vast majority of mandates are actually listed at less than 1% — a position that is often used by mandate advocates. We also don’t reccomend adding them up because we use ranges.
I also want to emphasize the impact on premiums can vary quite a bit — from state to state and plan to plan. In truth, estimating mandates across the whole market — large group, small group, individual, PPO, HMO, high deductible, managed care, etc. creates many variables.
Our data is based on what our member actuaries see in their job, and how they price real products.
I would add that because CAHI gets its information from insurance companies it does not provide a detailed explanation of how the numbers are derived. So, McCrory, please stop using bogus numbers.