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EFFECTIVE DATE, FOR MOST HEALTH PLANS, IS JANUARY 1, 2010
Mental Health Parity Act legislation was just passed as part of the economic rescue bill signed by President Bush on October 3rd.
The new law requires plans that offer mental benefits to ensure that deductibles, co-payments and covered hospital days and visits for mental-health benefits be on par with those for other physical impairments. Such a law has been
described by mental health advocates as a milestone in the quest for civil rights, an effort to end insurance discrimination and to reduce the stigma of mental illness.
Most employers and group health plans will need to adjust their benefits to comply with the new law, which requires equivalence, or parity, in the coverage. No longer can insurers impose separate cost-sharing requirements or treatment
limits that apply only to mental illness and addiction disorders. Additionally, the new law will make it easier for people to obtain treatment for a wide range of conditions, including depression, autism, schizophrenia, eating disorders
and alcohol and drug abuse. It will also encourage insurers to integrate coverage for mental health care with medical and surgical benefits.
The Congressional Budget Office estimates that the new requirement will increase premiums by an average of about two-tenths of 1 percent. Businesses with 50 or fewer employees are exempt. Medicare beneficiaries pay 20 percent of the
government-approved amount for most doctors' services but 50 percent for outpatient mental health services. The co-payment for mental health care will be gradually reduced to 20 percent over six years.
According to the National Institute of Mental Health, more than 57 million Americans suffer from a mental health disorder. A 2008 survey sponsored by the American Psychological Association suggested 25% of Americans did not have "adequate"
access to mental health services and 44% either did not have mental health coverage or were unsure if they did.
http://www.trion.com/community/resource-center/documents/mentalhealthparityactlegislationpassed-effectivedatejanuary12010.pdf
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