The Mental Health Minute

Articles and news about mental health issues

Law Requiring Parity of Mental and Substance Abuse Health Insurance Benefits Implemented

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This is a great day for mental health.  The Mental Health Parity Act will benefit so many people who need help but could not get it before.  The down side, however, is apparent if you read any healthcare administration blogs and posts.  There you will hear that due to implementation of this act, some businesses are looking to cut back on the benefits they offer employees.  Business is all about profit and loss–they want more profit and less loss.

While I applaud this act and believe that this is definitely a step in the direction of health for so many people, I am waiting to see exactly what the business responses will be before I get too excited.

What do you think about this act?  Do you see this as a move in the right or wrong direction?

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From Medscape Medical News

Emma Hitt, PhD

January 29, 2010 — Government departments today implemented a law requiring that health insurance cover mental and physical illnesses to the same extent.

The Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 prohibits group health insurance plans from restricting access to care by limiting benefits and requiring higher patient costs for mental health and substance abuse disorders compared with those costs that apply to general medical or surgical benefits.

The new rules were jointly issued today by the US Department of Labor, the US Department of Health and Human Services, and the Treasury.

“Today’s rules will bring needed relief to families faced with meeting the cost of obtaining mental health and substance abuse services,” stated US Secretary of Labor Hilda L. Solis in a written release. “The benefits will give these Americans access to greatly needed medical treatment, which will better allow them to participate fully in society.”

The act expands on the Mental Health Parity Act of 1996, which required parity in lifetime benefits for mental and physical disorders and was not applicable to substance use disorder benefits.

According to the Department of Health and Human Services release, the new law applies to out-of-pocket costs, benefit limits, and practices such as prior authorization and use review. “These practices must be based on the same level of scientific evidence used by the insurer for medical and surgical benefits,” the written release states.

The new rules are effective for plan years beginning on or after July 1, 2010, and apply to group coverage provided by employers with 50 or more workers whose group health plans offer mental health or substance use disorder benefits.

“We pushed hard to make sure that the intent of Congress was reflected in the implementation of the parity law,” noted Katherine Nordal, PhD, the American Psychological Association’s executive director for professional practice in a statement issued today. “We are delighted that under these regulations consumers are protected from insurance discrimination to the greatest extent possible.”

Dr. Nordal added that the banning of separate deductibles or the setting of separate out-of-pocket caps for mental health and medical/surgical services is “particularly significant.”

“This is a big win for anyone seeking mental health treatment,” she said.

Authors and Disclosures

Journalist

Emma Hitt, PhD

Emma Hitt is a freelance editor and writer for Medscape.

Disclosure: Emma Hitt, PhD, has disclosed no relevant financial relationships.
Dr. Hitt does not intend to discuss off-label uses of drugs, mechanical devices, biologics, or diagnostics not approved by the FDA for use in the United States.
Dr. Hitt does not intend to discuss investigational drugs, mechanical devices, biologics, or diagnostics not approved by the FDA for use in the United States.

Medscape Medical News © 2010 Medscape, LLC
Send press releases and comments to news@medscape.net.

Here’s the link to the original article

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February 1, 2010 - Posted by | Mental Health | , , , , , ,

5 Comments »

  1. Selecting a medical insurance plan that has great coverage and is affordable can be a difficult task, especially in the current state
    of the economy. Still, health is our most valuable asset and it is very important to protect it as much as possible.
    Thus it is essential to truly understand the importance of global medical insurance and who to go about finding it.

    Comment by georginashenton | February 3, 2010 | Reply

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    Comment by Wahrsagen Online Kostenlos | March 7, 2010 | Reply

  3. It sounds good, but the caveats are depressing (see http://thehawk333.wordpress.com ). Because the treatment of mental health and substance abuse issues is such an inexact science (art?), there are not agreed upon ‘standards of care’ to which insurance providers must adhere. The Act puts a lot of power in the hands of utilization review personnel who must determine the medical necessity of treatment.

    Comment by E Hawkins | June 26, 2010 | Reply

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