New legislation
Provides Full Parity for People with Severe Mental Illnesses and
Ends Insurance Discrimination
Senators Pete Domenici (R-NM) and Paul Wellstone (D-MN) have
announced their plans to introduce new legislation early next week
requiring health plans to provide full insurance parity for people
with serious brain disorders. This new bill builds on an existing
landmark law, the Mental Health Parity Act of 1996 (MHPA) also
sponsored by Senators Domenici and Wellstone, that removed
discriminatory insurance policies by equating annual and lifetime
limits for mental health benefits with annual and lifetime limits
for physical illness benefits. Although the MHPA was a historic
first step by which Congress and the President declared that
insurance discrimination is wrong and must not continue, many
compromises were necessary to pass this legislation which resulted
in the removal of many important measures that would have provided
truly equal coverage. The Domenici-Wellstone parity legislation that
is due to be introduced next week, is meant to address these issues
by providing full parity for specific severe mental illnesses and by
prohibiting limits on the number of covered inpatient days and
outpatient days.
ACTION REQUESTED
It is very important for NAMI grassroots and advocates to contact
their Senators and urge them to support this new legislation with
the following specific provisions when it is introduced. All
Senators can be reached by calling the Capitol switchboard at
202-224-3121. Email and mail addresses can be found by going to the
policy page on the NAMI website at www.nami.org and click on Write
to Congress.
WHAT THE NEW LEGISLATION DOES
The new Domenici-Wellstone parity initiative takes a two-pronged
approach to enhance insurance parity for people with severe mental
illnesses. The bill will provide insurance parity for specified
adult and childhood mental illnesses and prohibit limits on the
number of covered days and outpatient visits for all mental
illnesses. The proposal will specifically target for full parity
"severe biologically-based mental illnesses." These brain disorders
are:
- schizophrenia
- bipolar disorder (manic depression)
- major depression
- obsessive compulsive disorder
- severe panic disorder
- autism
- and other severe and disabling mental disorders such as,
severe anorexia and severe attention-deficit/hyperactivity
disorder.
For the purposes of the legislation, the term "severe
biologically-based mental illnesses" means the above listed
illnesses as defined by current medical science in conjunction with
the Diagnostic and Statistical Manual of Mental Disorders (DSM IV).
One of the most troubling provisions of the MHPA that came about
as a result of the legislative compromises, was the allowance of
plans to restrict the number of hospital days and outpatient visits
without regard to the patient's condition. In some cases, this
provision negated the purposes of the law and some employees
actually saw the number of covered inpatient and outpatient days
reduced. The new Domenici-Wellstone bill will expand the MHPA to
establish parity for the number of covered hospital days and
outpatient days for all mental illnesses.
The new Domenici-Wellstone bill is also expected to contain some
important requirement changes. The existing MHPA has a small
business exemption and only applies to companies with over 50
employees. The new bill expands its scope and is expected to have a
small business exemption that exempts businesses with 25 or fewer
employees. Another important requirement change will remove the
sunset provision of the MHPA, which only allowed the MHPA to be in
effect until September 30, 2001. With this removal, the MHPA will
not have to be re-approved by Congress and will be permanently in
effect.
The NAMI E-News will continue to provide more details on this
legislation and report on its status. For more information on the
Mental Health Parity Act and the new Domenici-Wellstone bill,
contact Chris Marshall at the NAMI offices at 703-524-7600 or visit
the NAMI website at http://www.nami.org/.
The NAMI Family-to-Family
Education Program is a free 12-week course for family
caregivers of individuals with severe brain disorders (mental
illnesses). The course is taught by trained family members.
All instruction and course materials are free for class
participants. |
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