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New Survey Shows
Positive Employer Compliance With Mental Health Parity Act Of 1996
And Negative Cost Impact
The Substance Abuse and
Mental Health Services Administration (SAMHSA) released a survey of
employers this week on the implementation of the Mental Health
Parity Act (MHPA) that suggests growing acceptance of equal benefits
for brain disorders and negative cost impact. About half of the
responding employers subject to the MHPA were already in compliance
with the Act before the law became effective in January 1998. More
importantly, the report showed that the majority of the employers
who made changes to comply with the MHPA responded that their costs
did not increase and they made no major changes to other benefit
provisions.
The data was part of a larger health care issues survey, the
Mercer/Foster Higgins "National Survey of Employer Sponsored Health
Plans," which took place from July through September in 1998. The
major findings include:
- Nearly half of those employers subject to the Act were already
in compliance before the January 1, 1998 effective date.
- Slightly more than a quarter of the respondents retained
separate mental health limits, but raised them, or included mental
health expenses with other expenses in determining annual or
lifetime dollar limits.
- There had been concern in the mental health community that
Mental Health Parity Act and similar parity mandates might result
in employers dropping mental health coverage altogether, or
increasing other limits in compensation. The report indicates,
however, that only a small proportion of employers took such
actions.
- Among employers who made changes as a result of the Act, the
large majority (86 percent) indicated that they made no
compensatory changes to their benefits, primarily because expected
cost increases were judged minimal or nonexistent.
The Mental Health Parity Act of 1996, also known as the
Domenici-Wellstone Parity Act, is a landmark law that for the first
time declared that discriminatory insurance policies against
coverage for serious brain disorders are unjust. Although the law
does not provide complete parity, it equates annual and lifetime
limits for mental illnesses to those for medical/surgical coverage.
However, due to other provisions in the law that allow health plans
to manipulate the number of inpatient and outpatient days, copays
and deductibles, the impact for consumers has been minimal. For more
information on the MHPA go to the NAMI website at http://www.nami.org/policy.htm.
For more information on this survey and background information,
go to http://www.samhsa.gov/press/99/1999.htm
on the SAMHSA website.
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