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Senate-passed bailout bill includes mental parity

Posted On: Oct. 02, 2008 8:25 AM CENTRAL | Add a comment

WASHINGTON—The Senate has again approved mental health care benefits parity legislation, bringing the measure closer to passage.

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In an unusual strategy, Senate leaders attached the massive financial services bailout legislation, along with provisions to extend certain expiring tax code provisions, to a parity bill the House had passed last week. The Senate then Wednesday evening approved the bill, sending the legislation back to the House, which is expected to consider the measure Thursday or Friday.

The Senate action is the latest twist in the mental health parity measure's long odyssey through Congress.

Earlier, separate and differing parity bills were approved by the House and Senate. The differences were resolved this summer, and the Senate last week approved the compromise parity bill as part of an energy and tax measure, while the House approved a stand-alone parity bill.

If given final approval, the parity legislation would require most employers to amend their health care plans to upgrade mental health care benefits coverage.

The legislation would require health care plans to provide the same coverage for mental disorders as they do for other medical illnesses. That would put an end to widespread discriminatory plan designs in which employers limit the number of annual outpatient visits for treatment of mental disorders but do not impose a comparable limit on the number of outpatient visits for other medical problems.

While the plan changes would be extensive, the cost impact is expected to be modest. The Congressional Budget Office last year estimated that enactment of a similar bill would boost health insurance premiums by an average of about 0.2% a year.

If the measure is enacted, it would take effect Jan. 1, 2010, for most calendar-year plans.


For reprints of this story, please contact Lauren Melesio at 212-210-0707 or email lmelesio@crain.com

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