Question

Hundreds of state mandates nationwide require the provision of certain benefits or the coverage of certain providers for all plans. Do these mandates address specific failures in the private insurance market or do they reflect the political strength of certain provider groups?

Answer 1

State mandate means any state constitutional, legislative, or executive law or order which requires any local government to establish, expand or modifyits activities, programms, or structure in such a way as to affect expenditure from local revenues.

Health benefits are minimum requirements for all Market place plans. Specific services covered in each broad benefits category can vary based on your state's requirements.

These mandates specific failure in an economic term that encompasses a situation where, in any given market the quantity of a product demanded by consumers does not equate to the quantity supplied by suppliers. This is a direct result to a lack of certain economically ideal factors.