As one of Governor George Pataki’s final acts before leaving office at the end of 2006, he signed into law a bill referred to as “Timothy’s Law” forcing insurance companies in New York State to provide benefits for most mental illnesses. It’s named for a 12-year old boy, Timothy O’Clair, who took his own life. The parents lobbied for years to get mental health provisions added to existing health insurance policies. Although the cause for these parents was personal and noble, the end result has been disastrous and expensive. According to a news report on Daily News Central:

Under the law, insurance companies must cover at least 20 outpatient visits and 30 inpatient visits per year for treatment of mental illnesses such as schizophrenia, depression, attention-deficit disorder and eating disorders.

It will not, however, require coverage for treatment of post traumatic stress disorder, or for drug and alcohol dependencies–a concession that was necessary to win sufficient support to pass the bill. Its sponsors have vowed to add those disorders to the list covered by the new law in future years.

Opponents have argued that “Timothy’s Law” will result in a rise in insurance premiums and place a burden on small businesses, but those with fewer than 50 employees won’t have to pay for the additional coverage — the state will subsidize the cost. However, larger firms will be required to foot the bill.

Please look the phrase in the third paragraph in the quote that says, “those with fewer than 50 employees won’t have to pay for the additional coverage.” Folks, this is a flat out lie. How do I know? Glad you asked! Since I am officially self-employed (working for a company located in the UK), I have to buy my own health insurance. I joined the local Chamber of Commerce and got on the CDPHP High Deductible Family Plan offered by the Chamber. I was paying $463 per month for the premiums. For that amount, I basically get squat. They won’t cover anything until a deductible of $5,000 has been reached. But hey, I considered it a bargain. I’m paying that amount as real “insurance” (not a prepaid health plan) against a catastrophic illness–something that would bankrupt us if it were to happen (cancer, heart attack, etc.).

Although $463 a month is a lot, it’s better than no insurance and better than the “standard” plans which run around $1,200 per month. Then Timothy’s Law came into being, and viola, my premiums jumped up to $585 per month–a 21% increase. CDPHP stated in a letter it was because of Timothy’s Law. No lie. I have the paperwork if you want to see it. So the statement that small businesses would not pay an increase was just a flat out lie.

According to my calculations, I now pay an additional $122 per month, or $1,464 per year, for precisely nothing. Thanks for nothing George.

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