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State Mental Illness Parity
Laws
Overview of State Parity Laws
Officially designated "The Decade of the Brain," the 1990s
brought unprecedented federal and state legislation to end health
insurance discrimination against individuals with mental illnesses.
After the Mental Health Parity Act of 1996 was signed into law, the
momentum shifted to the states. A firestorm of legislative activity
created a patchwork quilt of various parity laws around the country.
A total of 32 states now have some degree of mental health parity,
with fairness bills pending in many other state legislatures.
In 2000:
- 5 states passed parity legislation (Alabama, Kentucky,
Massachusetts, New Mexico, South Carolina {state employees only})
In 1999:
- 12 states and two territories passed parity legislation
(states: California, Connecticut {expansion of ’97 law},
Hawaii, Indiana {expansion of ’97 law}, Louisiana, Missouri
{expansion of ’97 law}, Montana, Nebraska, Nevada, New Jersey,
Oklahoma, Virginia; territories: Guam, Puerto Rico)
In 1998:
- 5 states passed parity legislation (Delaware, Georgia,
Pennsylvania, South Dakota, Tennessee)
In 1997:
- 8 states passed mental illness parity legislation (Arkansas,
Colorado, Connecticut, Indiana {state employees only}, Missouri,
North Carolina {state employees only, expansion of ’91 law}, Texas
{expansion of earlier requirement}, Vermont)
Between 1991 - 1996:
- 8 states affected mental illness parity measures (Maine,
Maryland, Massachusetts {state employees only by administrative
order}, Minnesota, New Hampshire, North Carolina {state employees
only}, Rhode Island, Texas {state employees only})
Federal Parity
Mental Health Parity Act of 1996: The Mental Health Parity
Act of 1996, which became effective on January 1, 1997 and will
sunset on September 30, 2001, requires employers that offer mental
health benefits to set annual and lifetime caps equal to those for
medical and surgical benefits. The measure excludes businesses with
50 or fewer employees, and allows all employers to be exempted from
the law if their costs rise more than one percent as a result of
complying with the requirements. The law allows health insurance
plans to set different benefit levels for co-payments, deductibles,
out-of-pocket payments, inpatient hospital days, and outpatient
visits.
Relationship to State Law: A state law requiring more
comprehensive coverage is not weakened by the federal parity law,
nor does the federal law preclude a state from enacting stronger
parity legislation.
States that Enacted Mental Illness Parity Laws that Mirror the
Federal Mental Health Parity Act of 1996: The following 15
states enacted laws that mirror the federal Mental Health Parity Act
of 1996 - -
Alaska (1997) Kansas (1997) North Carolina (1997)
Arizona (1997) Louisiana (1997) South Carolina (1997)
Delaware (1997) Montana (1997) Tennessee (1997)
Florida (1998) Nevada (1997) Utah (2000)
Indiana (1997) New Mexico (1998) West Virginia (1997)
Mental Health Equitable Treatment Act of 1999: On April 14,
1999, U.S. Senators Pete Domenici (R-NM) and Paul Wellstone (D-MN)
introduced the Mental Health Equitable Treatment Act of 1999
which would require full health insurance parity for the
most severe, biologically based mental illnesses. The legislation
would prohibit unequal restrictions on annual and lifetime mental
health benefits, inpatient hospital days, outpatient visits, and
out-of-pocket expenses.
Federal Employees Health Benefits Program (FEHBP): On June 7,
1999, during the White House Conference on Mental Health, the
Clinton Administration announced that it will require health
insurance plans for federal employees to provide equal coverage for
mental illnesses, mandating coverage for more than 9.5 million
federal workers and their family members in 2001.
State-By-State Breakdown of Mental Illness Parity Laws
State |
Year
Enacted |
Provisions of Law |
Effective Date |
Alabama |
2000 |
Requires group health plans to offer to provide benefits
for the treatment and diagnosis of mental illnesses under
terms and conditions that are no less extensive than the
benefits provided for medical treatment for other physical
illnesses. The law defines mental illness as including
schizophrenia, schizophrenia form disorder, schizoaffective
disorder, bipolar disorder, panic disorder,
obsessive-compulsive disorder, major depressive disorder,
anxiety disorders, mood disorders, and any condition or
disorder involving mental illness, excluding alcohol and
substance abuse that falls under mental disorders listed in
the International Classification of Diseases. The law does not
apply to group health plans covering employers with 50 or
fewer employees. |
January 1, 2001 |
Arkansas |
1997 |
Provides for equal coverage of mental illness and
developmental disorders; exempts state employees, companies
with less than 50 employees, and companies that anticipate a
cost increase of more than 1.5 percent. |
August 1, 1997 |
California
|
1999 |
Provides for persons of any age equal coverage for severe
mental illnesses, including schizophrenia, bipolar disorder,
major depressive disorders, schizoaffective disorder, panic
disorder, obsessive-compulsive disorder, autism, anorexia
nervosa, and bulimia nervosa. Covers children with one or more
mental disorders other than a primary substance abuse disorder
or a developmental disorder. No small business exemption.
|
July 1, 2000 |
Colorado |
1997 |
Provides for coverage of schizophrenia, schizoaffective
disorder, bipolar affective disorder, major depressive
disorder, obsessive-compulsive disorder that is no less
extensive than the coverage provided for other physical
illnesses. |
January 1, 1998 |
Connecticut |
1997 |
Provides for coverage of schizophrenia, schizoaffective
disorder, major depressive disorder, bipolar disorder,
paranoia and other psychotic disorders, obsessive-compulsive
disorder, panic disorder and pervasive developmental disorder
and autism that is equal to coverage provided for medical or
surgical conditions. |
October 1, 1997 |
Connecticut |
1999 |
Provides that policies shall not establish any terms,
conditions or benefits that place a greater financial burden
on an insured for access to diagnosis or treatment of mental
conditions than are placed on treatment of other physical
conditions. The statute defines mental conditions as the
mental disorders included in the most recent edition of the
DSM-IV, including addictive disorders. |
January 1, 2000 |
Delaware |
1998 |
Requires health insurers to provide coverage for
biologically based mental illnesses, including schizophrenia,
schizoaffective disorder, major depression, bipolar disorder,
delusional disorders, panic disorder, obsessive compulsive
disorder, anorexia and bulimia, under the same terms and
conditions of coverage offered for physical illnesses. |
January 1, 1999 |
Georgia |
1998 |
Requires larger employers (51 or more employees) that
choose to provide mental health benefits to provide equal
lifetime and annual caps for mental health benefits as is
provided for other physical illnesses, and provide the same
dollar limits, deductibles, and coinsurance factors. Employers
cannot impose separate outpatient and visit limits on the
treatment of mental illnesses. Requires smaller employers
(2-50 employees) that choose to provide mental health benefits
to provide equal lifetime and annual caps for mental health
benefits as is offered for other physical illnesses, and
provide the same dollar limits, deductibles, and coinsurance
factors. "Mental illnesses" cover all brain disorders listed
in the DSM-IV, including addictive disorders. |
April 6, 1998
|
Hawaii |
1999 |
Expands coverage for schizophrenia, schizoaffective
disorder and bipolar mood disorder. Excludes coverage for
substance abuse and other disorders, including major
depression. Establishes a task force to study the impact of
adding these illnesses at a later date. Exempts small
businesses with 25 or fewer employees. |
July 1, 1999 |
Indiana |
1997 |
Requires the same treatment limitations or financial
requirements on the coverage of services for mental illnesses
for state employees only. The law also includes a provision
that mirrors the federal mental health parity act of
1996. |
July 1, 1997 |
Indiana |
1999 |
Amends the 1997 parity law to cover "services for mental
illness," as defined by a contract, policy or plan for health
services. Does not mandate coverage or cover substance abuse
treatment. Exempts small businesses with 50 or fewer employees
and provides for a four-percent cost-increase
exemption. |
January 1, 2000 |
Kentucky
|
2000 |
Provides that treatment of a "mental health condition" must
be under the same terms and conditions as provided for
treatment of other physical health conditions. The law defines
"treatment of a mental health condition" as including, but not
limited to, any necessary outpatient, inpatient, residential
partial hospitalization, day treatment, emergency
detoxification or crisis stabilization services. The law
defines "mental health condition" as any condition or disorder
that is included in the DSM-IV or that is listed in the mental
disorders section of the International Classification of
Disease. The law includes alcohol and other drug abuse. The
law exempts group plans covering fewer than 50
employees. |
July 15, 2000 |
Louisiana |
1999 |
Mandates equitable coverage for severe mental illness
including schizophrenia, schizoaffective disorder, bipolar
disorder, pervasive developmental disorder (autism), panic
disorder, obsessive-compulsive disorder, major depressive
disorder, anorexia/bulimia, Asperger’s Disorder, intermittent
explosive disorder, post-traumatic stress disorder, psychosis
(not otherwise specified) when diagnosed in a child under 17
years of age, Retts disorder and Tourette’s disorder. Policies
must offer optional coverage for other mental disorders not
covered in the list (at the expense of the policyholder.)
Minimum benefits are to include 45 in-patient days, per year
(an exchange of two partial hospitalization days or two
residential treatment days per one in hospital day may be
provided) and 52 outpatient visits, including intensive
outpatient programs. No small-business exemption. |
January 1, 2000 |
Maine |
1995 |
Provides for coverage of schizophrenia, bipolar disorder,
pervasive development disorder, or autism, paranoia, panic
disorder, obsessive-compulsive disorder, and major depressive
disorder in group contracts that is no less extensive than
medical treatment for physical illnesses; no substance abuse;
excludes groups of 20 or fewer employees. |
July 1, 1996 |
Maryland |
1994 |
Prohibits insurers and HMOs from discriminating against any
person with mental illness, emotional disorder, or drug abuse
or alcohol abuse by failing to provide treatment or diagnosis
equal to physical illnesses. |
August 1, 1994 |
Massachusetts
(state employees only) |
1993
(Admin. Order) |
Requires parity coverage for outpatient, intermediate and
inpatient mental health and substance abuse care that the
state employee plan determines to be medically necessary. The
Order defines mental illnesses as the categories listed in the
current version of the DSM-IV, excluding certain disorders.
|
1993 |
Massachusetts
|
2000 |
Requires non-discriminatory coverage , health plans are
prohibited from including any annual or lifetime dollar or
unit of service limitation on coverage for the diagnosis and
treatment of mental disorders which is less than any annual or
lifetime dollar or unit of service limitation imposed on
coverage for the diagnosis and treatment of other physical
illnesses. Coverage includes non-discriminatory coverage for
the diagnosis and treatment of biologically-based mental
disorders (defined as schizophrenia, schizoaffective disorder,
major depressive disorder, bipolar disorder, paranoia and
other psychotic disorders, obsessive-compulsive disorder,
panic disorder, delirium and dementia, affective disorders and
any biologically based mental disorders appearing in the DSM
that are scientifically recognized and approved by the
Department of Mental Health), rape related mental and
emotional disorders and children and adolescents under the age
of 19 for the diagnosis and treatment of non-biologically
based mental, behavioral or emotional disorders. The law
requires parity for co-occurring mental illnesses and
addictive disorders, however does not require parity for a
diagnosis of an addictive disorder alone. Small group health
plans (1-50 employees) and non-group health plans are exempt
from provisions of the bill until January 1, 2002, provided
that benefits for mental health benefits are not reduced
before January 1, 2001. |
January 1, 2001 |
Minnesota |
1995 |
Requires cost of inpatient and outpatient mental health and
chemical dependency services to be not greater or more
restrictive than those for outpatient and inpatient medical
services. |
August 1, 1995 |
Missouri |
1997 |
Covers all disorders in DSM-IV in managed care plans only,
equal to that provided for physical illnesses (roughly 40
percent of population); part of larger managed-care regulatory
measure. |
September 1, 1997
|
Missouri |
1999 |
Specifies that coverage for mental illness benefits shall
not place greater financial burdens on the insured than for
physical illnesses. The law specifies that substance abuse is
covered only if the covered person also has a diagnosis of a
mental illness. The substance abuse coverage can be limited to
one detox session, which is not to exceed 4 days. Benefits to
individuals with co-occurring disorders are limited to 45
in-patient days. However, the insurer may still apply
different deductibles, co-pays or co-insurance terms.
Businesses can apply for an exemption if compliance with this
law results in a two-percent premium-cost increase. Provides
for impact study. The law expires on January 1, 2005. |
January 1, 2000 |
Montana |
1999 |
Provides equitable health insurance and disability
insurance for severe mental illness (schizophrenia,
schizoaffective disorder, bipolar disorder, major depression,
panic disorder, obsessive-compulsive disorder, and autism)
that is no less favorable than that provided for other
physical illnesses. |
January 1, 2000 |
Nebraska |
1999 |
Prior to January 1, 2002: requires plans to provide
coverage for schizophrenia, schizoaffective disorder,
delusional disorder, bipolar affective disorder, major
depression, and obsessive-compulsive disorder that shall not
establish any rate, term, or condition that places a greater
financial burden for treatment than for a physical health
condition. Parity must be provided for lifetime and annual
limits, and number of inpatient and outpatient visits. Parity
is not required in co-pays, co-insurance and deductibles.
After January 1, 2002: the law applies to "any mental
health condition that current medical science affirms is
caused by a biological disorder of the brain and that
substantially limits the life activities of the person with
the serious mental illness." Exempts plans with fewer than 15
employers. Not a mandate. |
January 1, 2002
January 1, 2000 |
Nevada |
1999 |
Mandates coverage for those with severe mental illness
including schizophrenia, schizoaffective, bipolar, major
depression, panic, and obsessive-compulsive disorders. Annual
and lifetime limits, and out-of-pocket limits are the same as
for other medical/surgical benefits. Minimum 30 in-hospital
days and 27 outpatient visits per year. Alternative to
hospitalization available on a two for one exchange of the
in-hospital benefits (up to 40 days), to include crisis
respite, partial hospitalization and other residential
treatment. Outpatient visits for medication management not
counted towards mental health benefits but come out of
standard medical coverage. Also: Co-pays and deductibles are
maximum of $18 for outpatient visits and $180 per in-patient
admission. Businesses with 25 or fewer employees are exempt
from this mandate. |
January 1, 2000 |
New Hampshire |
1994 |
Provides for coverage of schizophrenia, schizoaffective
disorder, bipolar disorder, paranoia, and other psychotic
disorders, obsessive compulsive disorder, panic disorder, and
pervasive developmental disorder or autism no less extensive
than coverage for physical illnesses; applies only to groups
and HMOs, regardless of size. |
January 1, 1995 |
New Jersey |
1999 |
Requires that every individual and group hospital service
corporation contract that provides hospital or medical expense
benefits and is delivered, issued, executed, or renewed in the
State shall provide coverage for biologically-based mental
illness under the same terms and conditions as provided for
any other sickness.
|
August 13, 1999 |
New Mexico
|
2000 |
Provides that group plans must not impose treatment
limitations or financial requirements on the provision of
mental health benefits if identical limitations or
requirements are not imposed on coverage of benefits for other
conditions. The scope of the law includes those mental health
benefits described in the group health plan, or group health
insurance offered in connection with the plan. The law does
not apply to benefits for the treatment of substance abuse,
chemical dependency or gambling addictions. The law includes a
cost exemption that allows employers that qualify to opt out.
|
October 1, 2000 |
North Carolina
(state employees only) |
1991 |
Requires non-discriminatory coverage in state government
employee health contracts. The law defines "mental illness"
when applied to an adult -- an illness which so lessens the
capacity of the individual to use self-control, judgment, and
discretion in the conduct of his affairs and social relations
as to make it necessary or advisable for him to be under
treatment, care, supervision, guidance or control; and when
applied to a minor -- a mental condition, other than mental
retardation alone, that so impairs the youth’s capacity to
exercise age adequate self-control or judgment in the conduct
of his/her activities and social relationships that the youth
requires treatment. The law provides that the state employee
plan must have the same deductibles, durational limits, and
co-insurance factors as apply to other physical illness
benefits. |
January 1, 1992
|
North Carolina
(state employees only) |
1997 |
Requires non-discriminatory coverage in state government
employee health contracts. The law is nearly identical to the
1991 parity law, described below, except that it broadens the
law to require non-discriminatory coverage for "chemical
dependency." The law defines "chemical dependency" as the
pathological use or abuse of alcohol or other drugs in a
manner or to a degree that produces an impairment in personal,
social or occupational functioning and which may, but need
not, include a pattern of tolerance and withdrawal, with a
diagnosis found in the DSM -IV or the International
Classification of Diseases (ICD). |
October 1, 1997 |
Oklahoma |
1999 |
Provides equitable coverage for those with "severe mental
illness," including schizophrenia, bipolar disorder, major
depressive disorder, panic disorder, obsessive-compulsive
disorder and schizoaffective disorder. Exempts "small
employers" with 50 or fewer employees; also provides for a
two-percent premium cost-increase exemption.
|
January 1, 2000 |
Pennsylvania |
1998 |
Requires that benefits be provided for serious mental
illnesses and that there be no difference in either the annual
or lifetime dollar limits in coverage for serious mental
illnesses and any other illnesses. The law also provides that
cost-sharing arrangements, including but not limited to,
deductibles and copayments for coverage of serious mental
illnesses shall not prohibit access to care. The law sets
minimum coverage for serious mental illnesses at 30 inpatient
days and 60 outpatient days annually. The law exempts
employers with 50 or fewer employees. |
April 21, 1999 |
Rhode Island |
1994 |
Provides for coverage of "serious mental illness" that
current medical science affirms is caused by a biological
disorder of the brain and substantially limits life
activities. The law requires that benefits for serious mental
illnesses include the same durational limits, amount limits,
deductibles and co-insurance factors as for other illnesses
and diseases. |
January 1, 1995 |
South Carolina
(state employees only)
|
2000 |
Requires the state health insurance plan to provide
coverage for medically necessary treatment of a mental health
condition and/or substance abuse disorder and provides that
the plan must not establish any term or condition that places
a greater financial burden on an insured for access to
treatment for a mental health or substance abuse condition
than is required for access to treatment for other physical
illnesses. The law provides that any deductible or
out-of-pocket limits required under the state health insurance
plan must be comprehensive for coverage of mental illnesses,
alcohol or substance abuse and other physical health
conditions. The law requires parity for biologically based
mental illnesses. The law includes a cost exemption which
allows the state plan to opt out of the requirements if it can
show that the total health insurance costs of the state plan
increase by more than 1% at the end of the 3-year period
beginning 1/1/2002 and ending 12/31/2004; or by more than
3.39% at any time beginning 1/1/2002 and ending
12/31/2004. |
January 1, 2001
(includes a sunset provision of January 1,
2005) |
South Dakota |
1998 |
Provides coverage for the treatment and diagnosis of
biologically based mental illnesses, including schizophrenia,
schizoaffective disorder, bipolar affective disorder, major
depression, obsessive-compulsive disorder, and other anxiety
disorders, with the same dollar limits, deductibles,
coinsurance factors and restrictions as for other covered
illnesses.
|
July 1, 1998 |
Tennessee |
1998 |
Provides mandated mental health coverage, but does not
cover alcohol or substance abuse treatment; annual and
lifetime limits and out-of-pocket expense limits must be equal
to other medical and surgical benefits; covers at least 20
inpatient hospitalization days and 25 outpatient visits per
year; alternatives to hospitalization must be provided at two
for one of the inpatient hospitalization days (up to 40 days),
including crisis respite services for the consumer,
residential treatment and partial hospitalization; outpatient
visits for medication management do not count toward mental
health benefits but are provided equal to a medical visit;
does not require parity for co-pays and deductibles; and a
business can file for an exemption after 12 months if its’
costs increase by more than 1 percent; businesses with 25 or
fewer employees are exempt. |
January 1, 2000 |
Texas
(public employees only) |
1991 |
Covers all public state and local employees, and all
teachers and university system employees; plan covers
schizophrenia, schizoaffective disorder, bipolar disorder, and
major depression. |
September 1, 1991 |
Texas |
1997 |
Covers schizophrenia, paranoia and other psychotic
disorders, bipolar disorder, major depressive disorder,
schizoaffective disorder, pervasive developmental disorder,
obsessive-compulsive disorder, and depression in childhood and
adolescence; exempts businesses with fewer than 50 employees;
grants 60 outpatient visits and 45 inpatient days
annually. |
January 1, 1998
|
Vermont |
1997 |
The law provides that health plans shall not establish any
lifetime or annual payment limits, deductibles, copayments,
coinsurance and any other cost-sharing requirements,
out-of-pocket limits, visit limits and any other financial
component of coverage that places a greater financial burden
on an insured than for other physical health conditions. The
law requires a single limit for mental health and physical
health deductibles and out-of-pocket limits. The law requires
parity coverage for mental illnesses and addictive
disorders. |
January 1, 1998
|
Virginia |
1999 |
Provides equitable coverage for schizophrenia,
schizoaffective disorder, bipolar disorder, major depressive
disorder, panic disorder, obsessive- compulsive disorder,
attention deficit/hyperactivity disorder, autism, and drug and
alcoholism addiction. Employers with 25 or fewer employees are
exempt. |
January 1, 2000 |
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and local affiliates
in all 50 states, the District of Columbia, Puerto Rico,
American Samoa, and Canada. |
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