 National Association of Counties * Washington, D.C. Vol. 33, No. 21 * November 12, 2001 Previous story | Table of Contents | Next story Senate OKs mental health parity bill By Sally McElroy
The Senate adopted the Mental Health Equitable Treatment Act (S.543) as an amendment to the Senate Labor, HHS funding bill. The bill, adopted Oct. 30 by voice vote, would require employers that provide group health insurance plans with mental health benefits to provide in-network benefits that are equal to the benefits for physical health. No company would be required to offer mental health coverage under this legislation, and businesses with fewer than 50 employees would not be subject to the parity requirements. Affected group health plans would not be able to impose any treatment limitations or financial requirements and copays for mental health care that are different from physical health care. The amendment would take effect on Jan. 1, 2003. NACo supported adoption of S. 543, which was on a fast track for Senate action before the events of Sept. 11 when it was pused off the agenda. Plans for action on the bill were revived in recognition of the effects on mental health and well-being the attacks have had on many throughout the nation. Sens. Paul Wellstone (D-Minn.) and Pete Domenici (R-N.M.) continuously advocated for action on the bill before their party’s leadership. In addition, support for the bill among interest groups and providers remained widespread. The House Labor, HHS Appropriations Bill does not contain a similar provision. Therefore, S. 543 will be an issue for the conference committee to resolve. Similar House legislation, H.R. 162, has not been considered. However, the House version of the economic stimulus package contains a two-year extension of the 1996 Parity Law, which expired on Sept. 30. This law provides parity for mental health coverage in annual and lifetime caps but does not contain the language barring treatment limitations and financial requirements. In addition, under the 1996 law, companies that experienced a rise of more than 1 percent in health insurance costs due to compliance with parity were exempt from the law. Although the amendment passed by voice vote, there were some concerns expressed about the cost of the bill. Several senators feared that cost increases resulting from providing comprehensive mental health parity could increase overall health insurance costs for businesses to a point that they might decide to drop coverage altogether. Earlier this year the Congressional Budget Office (CBO) estimated that S.543 would increase health care costs by 0.9 percent for group health plans. Sen. Phil Gramm (R-Texas) estimated that the bill would cost the private sector $23 billion over five years. NACo supports S. 543 and H.R. 162. |