Parity Bill Becomes Law

Dr. Marvin D. Seppala, Medical Director, CEO
Beyond Addictions

On Friday, October 3, 2008, President Bush signed the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Bill. The passage of this bill into law is the culmination of years of effort to end discrimination against those with mental health and substance use disorders. In response to the passage of the bill Pete Domenici (R.-N.M.) said, “We are ushering in a new era of health care for those with mental illnesses. No longer will we allow mental health to be treated as a stepchild in the health care system. If you have insurance, then your mental health care must be equal to benefits you get for any other disease.” People with mental health and addictive disorders will now have access to the same type of insurance benefits they receive for physical illness.

The bill requires health insurance plans that offer mental health coverage to provide the same financial and treatment coverage offered for physical illnesses. It expands parity by including deductibles, co-payments, out of pocket expenses, coinsurance, covered hospital days, and covered outpatient visits. It also requires that medical necessity determinations and the reason for denials of coverage are made available to the public. It does not mandate that group health care plans provide mental health coverage and there is a small business exemption for companies of fewer than 50 employees. The effective date the requirements will go into effect, for most health plans, is January 1, 2010.

This bill is a solid start in ending the discrimination and stigma associated with addiction and mental health issues. It will make it much easier for people to obtain the treatment and care they need for these disorders. This bill will end the loophole in Oregon’s parity bill as those insurance companies with headquarters outside the state will no longer be exempt from providing this type of coverage.

I want to thank everyone who contacted their Senators and Representatives to support passage of this historic bill.

A summary of the bill can be found at Thomas.gov by searching the name of the bill. It was part of the financial rescue package.