Panel boosts mental health parity law

The measure's supporters hope Congress passes new bill before the current, less-comprehensive law expires.

By Amy Snow Landa, AMNews staff. Aug. 20, 2001.

Washington -- Congress has moved a step closer to expanding a law intended to require health plans to provide the same level of coverage for mental health problems as they do for other medical conditions.

The Senate Health, Education, Labor and Pensions Committee unanimously approved a measure in August that would expand the Mental Health Parity Act of 1996, which is set to expire Sept. 30.

The panel approved the 2001 Mental Health Equitable Treatment Act, which would expand current law to prohibit health plans from setting treatment limits or financial requirements for mental health services that are different from those set for other medical services. Health plans would not be able to charge higher patient co-payments or deductibles, or allow fewer hospital stays or outpatient visits for mental health treatment. The AMA and the American Psychiatric Assn. support the legislation.

"This is a giant leap toward ending insurance practices that discriminate against mental illness," said Steven M. Mirin, MD, APA medical director. Current law only prohibits annual or lifetime dollar caps on mental health benefits that are lower than those for other medical benefits.

"What we can't afford is to continue denying persons with mental disorders the services they need," said Sen. Edward Kennedy (D, Mass.), the HELP committee's chairman.

But many employers would like-ly drop mental health coverage if the measure is enacted, said James A. Klein, president of the American Benefits Council, which represents large employers. [...]