Mental health parity extended another year

But more comprehensive legislation has fared poorly despite broad, bipartisan support.

By Joel B. Finkelstein, AMNews staff. Dec. 2, 2002.

Washington -- Lawmakers have granted a one-year extension to a law that provides some equality in insurance coverage for mental health services. But physician groups said that move falls short.

The 1996 Mental Health Parity Act expired in October 2001, but lawmakers have extended it each year since then through a provision of the tax code that subjects managed care firms that don't follow the law to penalties.

The act requires health plans to set lifetime and annual reimbursement limits on mental health services that are at least equal to those for medical and surgical care.

The American Psychiatric Assn. is pleased that Congress again extended the law but is disappointed lawmakers didn't pass legislation that would have expanded patients' rights to mental health parity.

"Yes, the APA is grateful that the House and Senate have ensured that the current limited protections ... will not lapse but believes that is not an adequate solution to the long-term problem of insurance discrimination against persons seeking treatment for mental illness and substance abuse disorders," said APA President Paul S. Appelbaum, MD.

Legislation introduced last year in the House and Senate would have closed the law's loopholes by barring plans from setting different co-pays or limits on the number of treatment sessions or hospital stays for mental health treatment than they do for medical or surgical care.

The measure, which was co-sponsored by the late Sen. Paul Wellstone (D, Minn.), could come up for consideration again next year. [...]