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Mental health coverage makes a breakthrough

Did you know?
"Michelle's Law" expands coverage for college students

Quick Poll – Review

January Quick Poll – Vote

Further Reading

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MENTAL HEALTH COVERAGE MAKES A BREAKTHROUGH

With the recent passing of the Mental Health Parity and Addiction Equity Act, now is a good time to take stock of how mental health and substance abuse fit into your healthcare plans and HR practices.

Not see much about the new bill? You’re not alone. Though we announced it in the last issue of E to E, both Time and Newsweek noted its passage was one of the most underreported events of 2008.

Approved in October as part of the 2008 Wall Street bailout legislation, the act will require employers and insurers to cover mental health and substance abuse at the same level they cover physical health. Some key points include:

• Plans are not required to offer mental health and substance abuse benefits. If they do, however, they must follow the new requirements, which include parity with physical health coverage for deductibles, co-payments, co-insurances, as well as dollar and visit limits.
• Substance abuse/addiction treatment is included in the new bill.
• Businesses with fewer than 50 workers are exempt from the law.
• For most plans, the law takes effect in January of 2010.

According to Mental Health America, a Virginia-based advocacy organization, the new law expands coverage for approximately 113 million Americans. Mental health professionals welcome the new law and hope it helps relieve the stigma often tied to their clients. But some worry that associated costs will be an ongoing dilemma. How much will it cost? The Congressional Budget Office estimates the law will indeed push up insurance premiums by two-tenths of 1 percent (that’s about $23 a year for an average family premium of more than $11,000). If a group health plan can prove that parity raises its total costs by more than 2 percent the first year and 1 percent in subsequent plan years, an exemption is possible.

Clearly, mental health issues influence workforce productivity, absenteeism, and healthcare claims. Improvements in these areas can go a long way toward offsetting the costs associated with the Mental Health Parity and Addiction Equity Act – in fact, some in-the-know advocates actually project cost savings. If you have questions about how this law affects you, feel free to call NIHP at (800) 723-0202. We can help you sort through the specifics as they relate to your plan.

DID YOU KNOW?
“MICHELLE’S LAW” EXPANDS COVERAGE FOR COLLEGE STUDENTS

Concerns of college students and their parents were recently reduced by one thanks to “Michelle’s Law,”  which passed the U.S. Senate in September of 2008. A version of New Hampshire legislation that guarantees health insurance for ill students who are unable to maintain a full class load, Michelle’s Law allows students an option for brief medical leave during which they can cut back on or leave college to concentrate on their health needs – without jeopardizing the insurance they rely on for their treatments. More about this topic in the April issue of E to E.

A Quick Review of Last Issue's "Quick Poll"

January Quick Poll – Vote

Further Reading

Mental Health Law May Affect Local Businesses
Memphis Daily News, January 7, 2009

Mental health professionals welcome a new federal law, The Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act that puts mental health benefits on equal terms with other medical benefits. Some worry that the legislation could have a reverse effect.

Act Will Improve Access to Mental Health Treatment
Courier-Journal, December 22, 2008

The new Mental Health Parity law expands coverage for approximately 113 million Americans. While its overall financial impact is unclear, many mental health experts say it may save money by getting people into care early so they don't wind up in emergency rooms with a crisis.

Mental Health Parity and Addiction Equity Act Signed Into Law
Employee Benefit News, December 1, 2008

Employers should start to examine and amend their plan designs and HR practices regarding mental health and substance abuse.

Will the New Mental Health Parity Law be a Costly Benefit?
Employee Benefit News, November 25, 2008

Opinions abound on the impact of the new Mental Health Parity law. This article covers one person’s view on the expenses involved when the new law is implemented.