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LB 505 Talking Points

  • Requires certain health insurance plans sold in Nebraska to provide coverage for the diagnosis and treatment of Autism Spectrum Disorders in children and youth less than age 21.  Covered services included behavioral health treatment including applied behavior analysis (ABA) when provided or supervised by a board certified behavior analyst or licensed psychologist.  Caps coverage for ABA treatment at $40,000 each year annually to age 21.

 

This bill won’t cover all children in Nebraska.  Should we wait for a bill that will cover everyone?

  • We are aware that this legislation does not cover every child in Nebraska.  We estimate this bill will reach 1000 additional children.  LB 505 as amended is a compromise with insurers and limits types of policies it would affect, satisfying concerns regarding ACA. It is a compromise we are willing to make to ensure at least some families get coverage rather than know their son or daughter will not get treatment.  The amendments have been agreed to by all three health insurers in Nebraska.  Every child is worth helping.  This is a first step.  Are we saying if we can’t help everyone than we shouldn’t help anyone?  No child is dispensable.  We do not know when federal legislation may be passed.  Every minute counts for our kids.  No child can afford to wait.

Will this bill bring an additional cost to the state?

  • Language in LB505 clarifies that the proposed benefits will only apply to plans offered outside the Nebraska Exchange therefore, there will be no cost to the State of Nebraska if Health and Human Services under the Affordable Care Act determines that the benefit exceed the essential health benefits.
    • Essentially there is language that covers possible interpretations that are yet to come out of the Affordable Care Act.  This benefit will not result in the State of Nebraska paying anything to cover this benefit – excluding any requirement to cover state employees as part of their health insurance plan.

 

Will this bill cause an increase in my insurance premiums?

  • Small employers with group plans may receive a waiver from the Nebraska Department of Insurance if the required coverage results in a 2.5% increase or more in policy cost in one year.
    • If this benefit results in 2.5% increase in premiums, small businesses can opt out.  Missouri has a similar provision in their law and no small business has applied for the waiver since their law went into effect.
    • Actual claims data from States that were among the first to enact autism insurance reform laws demonstrate the average cost of this benefit to the insurance company to be 31 cents per member per month.
      • This issue has been studied in other states with similar legislations the cost increase is less than 1% of current health care policy premiums.  Anyone who tells you this mandate will result in an increase in premiums, demand to see the data that proves that.  There is none!  All the data from the 36 other states that have passed autism insurance legislation demonstrates that it has not resulted in any significant increase in premiums.
      • This legislation will also generate savings to public school districts ($208,500 over the educational life span) and other publicly funded organizations that try to provide services today.
      • Further, the long-term costs savings of providing early intervention services have been estimated to be $2.5M per person over their lifetime by enabling people with autism to become contributing members of society rather than remaining dependent upon public assistance for the rest of their lives. It will reduce the financial burden on society.

 

Are Autism therapies proven to be effective?

  • There are evidence based therapies, including ABA, that are proven and effective. This has been documented through multiple scientific studies and ABA has been endorsed as an effective method for autism treatment by the US Surgeon General, the AmericanAcademy of Pediatrics and The National Institute of Mental Health.

 

Is Autism an educational issue and be solved by the schools?

  • Autism is a recognized developmental disability and medical condition by the American Medical Association (AMA). Autism is a medical diagnosis, not an educational issue. It is diagnosed by a doctor, not a principal. Both diagnosis and treatment need to be performed by trained medical professionals.  The school systems don’t have, and shouldn’t be expected to have, the expertise to treat this medical condition. This situation results in higher costs in the public schools and ineffective treatments being delivered to people with autism.

 

This ‘mandate’ is a slippery slope and will open the door to a lot of other mandates

  • This is an argument that the insurance companies use all the time and it just doesn’t make sense.  This issue and all others should be evaluated on their own merits and that is what is happening with this bill and will happen with any future bills put before the legislature.