State lawmakers are proposing reforms to expand health care coverage.
Lawmakers in the most economically prosperous states are seeing that strong population growth means a need for more doctors, nurses, dentists, dental hygienists and other health care providers. Reforms currently underway in two of the nation’s fastest-growing states—Florida and North Carolina—demonstrate how lawmakers are seeking to expand health care supply in their states by reducing regulatory barriers.
In North Carolina, which had the third-fastest population growth in the nation last year in nominal terms, Rep. Erin Parè recently introduced House Bill 1056, a bill aimed at increasing the supply of certain health care providers. HB 1056, if passed, would make North Carolina a party to the Interstate Compact for Physician Assistants. If Rep. Parè’s proposal becomes law, physician assistants licensed in other states that are members of the Compact could immediately begin working in North Carolina without being delayed by the red tape of obtaining state licenses.
“Physician assistants have the qualifications and capabilities to meet the demand for medical care,” Rep. Parè said in a statement, adding that she was “very pleased to lead this common-sense bill.” To date, 12 states have passed legislation to join the PA Licensure Compact. Two states bordering North Carolina – Tennessee and Virginia – are already parties to the pact. The PA Licensure Compact website advertises the following benefits of Compact membership, noting that it:
- Facilitates multi-state practice by reducing the burden of maintaining multiple licenses.
- Expands employment opportunities to new markets.
- Improves continuity of care when patients or providers move.
- Supports the relocation of military spouses.
Interstate compacts have proven to be a popular and effective mechanism for increasing worker mobility and reducing regulatory barriers to employment in a number of other approved fields. According to the National Center for Interstate Compacts (NCIC), “299 separate pieces of legislation relating to accrediting agreements have been adopted by the states.”
“To date, 50 states (plus U.S. territories and the District of Columbia) have adopted at least one licensure compact,” NCIC adds. “Licensure compacts for 17 professions are currently available for enactment.”
North Carolina isn’t the only state where legislation aimed at reducing health care costs by increasing the number of health care providers is still pending. In Florida, which saw the fastest population growth in the country last year, legislation aimed at recognizing professional licenses from other states recently made its way to Gov. Ron DeSantis’ (R-Fla.) desk. The bill, SB 1600, which was introduced by Sen. Jay Collins (R), would make Florida the latest state to have a universal licensing recognition (ULR) law on the books.
ULR laws, by which a state recognizes the out-of-state licensure of new residents, have arguably been among the most popular policy innovations of this century. First passed in Arizona in 2019 by then-Governor Doug Ducey, nearly half the country now has a ULR law on its books. SB 1600 was sent to the governor on June 17, meaning he has until July 1 to sign, veto or let the bill become law without his signature. If SB 1600 passes, the state most in need of a ULR law due to its exceptional growth, Florida, will become the last state to offer universal licensure.
As these recent reforms in Florida and North Carolina demonstrate, lawmakers believe that removing or streamlining regulatory barriers to employment, rather than a new spending program, is the most effective approach to addressing workforce shortages. Senator Collins’ efforts in Florida and Representative Parè’s proposal in North Carolina demonstrate how lawmakers are taking steps to increase the supply of service providers, particularly those that are essential to quality of life.
