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Business, payer community ready for mental health parity

By Patty Enrado

WASHINGTON – After a decade of legislative attempts to bring true parity to mental health, Congress is poised to pass a bill that has teeth, when compared to its 1996 predecessor.

Mental health advocates want the Mental Health Parity Act of 2007 (S. 558), which has broad support from the managed care and business community and was unanimously approved, enacted into law soon.

The House version, the Paul Wellstone Mental Health and Addiction Equity Act of 2007 (H.R. 1424), is undergoing reconciliation among three House committees.

“We believe the Senate bill is a strong bill and has a better chance of getting through the process,” said Andrew Sperling, director of federal legislative advocacy for the National Association on Mental Illness.

 

The House bill’s coverage mandate has never been tried on either the federal or state level. Whereas the Senate bill gives payers a choice on the financial limit and treatment when parity is being imposed, the House bill requires payers that choose to cover mental health benefits to cover everything in the Diagnostic Statistical Manual, which defines all disorders, from schizophrenia to jet lag.

The business and payer communities, Sperling believes, are tired of taking a defensive posture. “We’ve come a long way,” he said. He gives credit to the scientific community, whose research supports the biological basis for mental illness, and the more effective treatment for mental illness now available.

Pamela Greenberg, president and CEO of the Association of Behavioral Health and Wellness, said employers and society in general are now understanding that not treating mental illness is more costly in terms of lost days from absenteeism and presenteeism.

Cigna, which has been providing behavioral benefits to nearly 12 million members, joined businesses and mental health advocates in shaping the Senate bill.

 

“Cigna and employers have endorsed the Senate version of this reform because it preserves a plan’s ability to manage the benefits while limiting the state law preemption,” said spokesperson Arlys Stadum.

Cigna’s preliminary estimate of the financial impact of the Senate bill is less than one-quarter percent of combined medical and behavioral costs, said Stadum.

“This issue is critical right now because more people – including but not limited to soldiers returning from Iraq – are being diagnosed with mental disorders, and in the absence of universal health coverage, people will depend on their employers to provide coverage for themselves and their dependents,” said Sherry Colb, professor of law at Rutgers Law School.

New legislation would enable early treatment, critical to successful outcomes.

“It is in society’s best interests that people suffering from mental illnesses receive treatment and care so that they can become and/or remain productive, contributing members of the community,” said Colb.