The Los Angeles Times reports on the recently enacted Mental Health Parity Act. Included in the financial bailout legislation enacted last week, the new law requires health plans to cover mental and physical illnesses equally. Among other things, the law prohibits companies from establishing higher co-pays or deductibles for mental health and substance abuse treatment. Companies with fewer than 50 employees are exempted.
Recommended Action: While news coverage has focused on the anticipated increase in health insurance costs resulting from the law, the expansion in benefits should be positive in many respects for providers of mental health services and providers who treat substance abuse issues by ensuring more expansive coverage of benefits. Among other things, the law bars restrictions on outpatient therapy sessions or hospital treatment days. Not all patients will benefit, however; the law does not require plans that do not currently offer any mental health treatment to begin doing so.
Harry Nelson is a partner in Fenton & Nelson, LLP. Fenton & Nelson counsels physicians and other healthcare providers on regulatory compliance and business matters. For additional information, please contact him at harry@fentonnelson.com
©Harry Nelson 2008
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