Insight Matters
Fall, 2001

Senate Passes Parity Legislation

The American Psychiatric Association lauds the U.S. Senate for its overwhelming passage of historic mental health parity legislation, introduced by Senators Pete Domenici (R-NM) and Paul Wellstone (D-MN) as an amendment to the fiscal year 2002 Labor-HHS Appropriations bill (H.R. 3061). The amendment would end discriminatory health insurance practices in the treatment of mental health care.

"The APA congratulates Senators Domenici, Wellstone and other cosponsors of the landmark amendment for their tireless advocacy for mental health parity," said APA President Richard K. Harding, M.D. "This is a giant leap toward ensuring the mental health needs of all Americans can no longer be ignored."

As approved, the Domenici-Wellstone amendment expands upon the Mental Health Parity Act of 1996, which expired on September 30, 2001. The bill prohibits health plans from treating mental health benefits differently from the coverage of medical and surgical benefits. More specifically, the bill bars health plans from setting different treatment limits or financial requirements such as higher patient co-payments, fewer hospital days, higher patient deductibles, and fewer outpatient visits on mental illness treatment than are currently set for other medical treatments. To address concerns about possible cost issues, the sponsors agreed to delay the implementation date until January 1, 2003.

"The parity amendment levels the health care coverage playing field to require equal access to equitable psychiatric treatment, which will lessen health care costs in the long run," said APA Medical Director Steven M. Mirin, M.D. "Study after study concludes that mental health parity costs pennies a day. Moreover, the cost of not treating mental illness is far greater than the minimal cost of this legislation."

"The APA strongly supports the Domenici-Wellstone amendment, which provides long-anticipated and meaningful health reform, and combats the stigma that has accompanied mental illness for centuries," continued Dr. Harding. "We look forward to working with the House and Senate Labor HHS conferees to ensure this vital provision is signed into law this year to protect the millions of Americans suffering with mental illness."

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