Every day, economic realities force us to reassess our priorities. We may want the newest and most expensive things, but what’s in our wallets usually limits our ability to purchase beyond our means.

When money is scarce, we choose carefully and tighten our belts.

That’s the way it works in our households and in business—and should in the legislature.

“Should” is the operative word because the legislature, despite Connecticut’s slow economy, is again preparing to ignore economic realities and make one of our most important (and costliest) purchases even more expensive.

The item is health insurance, and the added costs are being caused by health insurance mandates.

We’ve been down this road before, so we know that mandates are state laws that require certain health insurance policies (more often those purchased by small companies and individuals) to cover various medical procedures and treatments.

We also know what they do – ensure that these mandated procedures or treatments are paid for by health insurers.  We may or may not ever need the coverage mandated, but still pay for it through higher premiums.

In fact, every time the legislature passes a new mandate or expands an existing one, health insurance premiums rise for individuals and many employers.

That’s because state health insurance mandates apply to “fully insured plans,” which are those purchased by individuals and small businesses. Which means that higher premiums will be paid by those who can least afford them.

Companies that can afford to self-insure, usually larger businesses, do not need to comply with state mandates.

Now, only two weeks into the 2012 session, the legislature’s Insurance Committee is considering more of these premium- hiking mandates.

So far, the committee has held public hearings on five mandates, including SB 19 requiring insurance coverage for head lice treatment; and SB 18 expanding coverage for infertility treatments.

It’s never the right time to make health insurance more expensive. But the worst time is when the economy is laboring, businesses are floundering, and people are struggling.

Sounds a lot like the time we are in right now.

For more information, contact CBIA’s Eric George at 860.244.1921 or .(JavaScript must be enabled to view this email address).