Fast Track Sought for Mental Health Parity Bill

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February 20, 2002—Mental health advocates are again pressing for passage of a mental health parity law. Last year, the Senate passed a mental health parity amendment, S. 543, the Mental Health Equitable Treatment Act, sponsored by Senators Pete Domenici (R-NM) and Paul Wellstone (D-MN), amending the appropriations bill for the Departments of Labor, Health and Human Services and Education (Labor/HHS). But the amendment was deleted in conference when many of the House Republican conferees claimed that it would increase health insurance costs, forcing employers to reduce or drop employees' benefits. Others rejected it on grounds that it was authorizing legislation in an appropriations bill.

The conferees did, however, renew the 1996 Parity Act (parity only for lifetime and annual limits) for one year. They also included language in the Labor/HHS conference report urging the committees with jurisdiction in House and Senate to hold hearings and consider the parity legislation this year.

White House Compromise Proposals

Renewed efforts by the Senate sponsors have led to talks with the White House, which has signaled optimism about compromise. One of the President's top health policy advisers has suggested as the possibility of allowing insurers to avoid complying with the law if their premiums increase by at least 1%.

Another White House suggestion is modeling a federal statute on the Texas mental health law, which provides parity only for "serious mental illnesses," excluding many other mental disorders. The Bazelon Center opposes the discriminatory exclusion created by treating mental illnesses differently based on etiology and has objected to this distinction.

Senate Sponsors Seek Early Vote

Senators Domenici and Wellstone are working to bring S. 543 to the Senate floor for debate and a vote early in the current session in order to position the House and the Administration in a position to act upon the legislation this year.

S. 543 would:

• eliminate health insurance discrimination by prohibiting differences in the treatment of and medical/surgical care for all mental health conditions listed in the Diagnostic and Statistical Manual of Mental Disorders Fourth Edition (DSM-IV);
• require in-network parity for group health plans sponsored by employers of more than 50 employees by eliminating discriminatory limits on inpatient days and outpatient sessions, maximum out-of-pocket limits, co-payments and deductibles; and
• apply to plans that already provide mental health benefits (it would not require plans to offer such benefits).

Action Needed

1. Contact your Senators and urge them to:

Support S. 543 and vote to pass the bill when it comes before the Senate.

2. Contact your Representative, especially if a member of one of the three committees with jurisdiction of mental health parity; The House Education and Workforce Committee, House Energy and Commerce Committee, and House Ways and Means Committee (see http://www.house.gov for a list of members). Urge him or her to:

• hold hearings on mental health parity as strongly urged by last year's House and Senate conferees to the fiscal year 2002 Labor/HHS conference report (H.Rpt. 107-342); and
• work swiftly to enact parity this year.

3. Remind both your Senators and your Representative that:

• Now is the time to end health insurance discrimination as it now exists for many children and adults who require mental health treatment, especially in the wake of the terrorist attacks on our nation, which have made access to mental health care increasingly important to the American public and to building a mentally healthy nation.
• Reducing barriers to mental health care should be a priority for our nation and a federal standard is needed to ensure full parity for mental health services in private insurance policies.
• Mental health parity is supported by more than 150 national advocacy organizations.
• The Congressional Budget Office has estimated that mental health parity (S. 543) would increase insurance premiums by a mere .9% (less than 1%).