Congress Likely to Approve Mental Health Parity Measure
Congress is "likely" to pass a mental health parity bill that would prohibit insurers from placing lower dollar limits on mental health coverage than on other care, potentially broadening a 1996 law set to expire at the end of September, NPR's "Morning Edition" reports (Rovner, "Morning Edition," NPR, 9/4). The bill, known as the Mental Health Parity Act (S 543), would keep insurers from imposing limits on hospital stays and physician visits for mental health treatment that are greater than those imposed for physical health visits, and require them to charge the same co-payments and deductibles for both mental and physical health services. In comparison, the 1996 law required only that health plans provide equal annual and lifetime benefits for mental health as for other services (California Healthline, 8/2). Howard Goldman, a professor of psychiatry at the University of Maryland, called the 1996 law "an important first step" and "an enormous rhetorical victory," but noted that it was "limited in its impact" because it focused on annual and lifetime limits, allowing insurers to continue limiting hospital days or setting higher co-payments for mental health care. The 1996 law also specifically excluded small businesses and parity for substance abuse treatment. Andrew Sperling with the National Alliance for the Mentally Ill said that enough has changed in the last five years to justify broader coverage requirements. Sperling said, "We've learned that there is a biological basis [for behavioral health issues]. We've learned that there are treatments that are as effective as those for heart disease or diabetes. And that there is no scientific or medical justification for businesses to cover treatments for these illnesses on different terms."
But James Klein, president of the American Benefits Council, said, "I think the business community in general always has concerns with Congress mandating benefits, because companies feel that they are better equipped to negotiate benefits directly with their workers." Klein acknowledged that the 1996 law has cost "far less" than anyone thought it would, "thanks in large part" to organizations that provide managed behavioral health care. Still, Klein said that even a small increase in coverage requirements would be too much for most businesses at a time when most health care costs are rising rapidly ("Morning Edition," NPR, 9/4). The Senate Health, Education, Labor and Pensions Committee unanimously approved the Mental Health Parity Act on Aug. 1 (California Healthline, 8/2). It remains "unclear," however, if President Bush would sign the bill. As governor of Texas, Bush signed a state mental health parity bill "with considerable fanfare," but he has not said whether he supports a federal version. To hear the report, go to http://search.npr.org/cf/cmn/cmnpd01fm.cfm?PrgDate=09/04/2001&PrgID=3 (Rovner,"Morning Edition," NPR, 9/4). Note: You must have RealPlayer to hear the report.
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