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NMHA News Release July 27, 1999
  Contact: Media Affairs
(703) 684-7722
NMHA Statement on Substance Abuse Parity Legislation from Michael Faenza, President and CEO

Alexandria, VA (July 27, 1999) As the nation's oldest mental health advocacy organization, the National Mental Health Association (NMHA) believes the time has come to end private health insurance discrimination against individuals with substance abuse problems. With the Fairness in Treatment: The Drug & Alcohol Addiction Recovery Act of 1999 introduced today, Senator Wellstone is leading the way in ending discriminatory practices.

In the past year, 52 million Americans have experienced an alcohol, drug abuse or mental health disorder, according to the federal Center for Mental Health Services. Eight million have had co-occurring disorders, meaning they experienced both a mental disorder and a substance abuse problem.

Today we know that alcohol abuse and related addiction disorders are legitimate health problems --- as real as other chronic diseases such as heart disease, diabetes and hypertension. Modern protocols identify standards of care that have significantly enhanced the efficacy of inpatient and outpatient substance abuse treatment. These clinical standards determine when treatment is indicated, which treatment is appropriate, and what outcomes are expected.

As staunch advocates, NMHA and its 340 affiliates across the country have always believed that both mental health and substance abuse parity make good business sense. A 1997 study conducted by MCC Behavioral Care found that workers who received timely substance abuse treatment:

  • Reduced emergency room usage,
  • Reduced inpatient hospital admissions,
  • Radically reduced worker absenteeism,
  • Improved workplace safety, and
  • Significantly improved job performance (according to their employers).

Such results need not be expensive. A 1998 SAMHSA study found full and complete substance abuse parity would result in a 0.2% increase in private health insurance premiums. Similarly, a 1997 Milliman and Robertson study found that non-discriminatory substance abuse benefits increased per capita premiums by only 0.5% -- or about $1.35 per member per month.

The most important aspects of Senator Wellstone's legislation center on recognizing substance abuse disorders as illnesses and prohibiting annual and lifetime caps, co-payments and deductibles, and hospital days and outpatient visits that are different from those for other illnesses.

NMHA strongly favors both mental health and substance abuse parity because parity is affordable, effective and makes good business sense. Even more importantly, NMHA supports substance abuse parity because it is simply the right thing to do for all Americans.