Congress Extends Mental Health Parity Provision for Additional Year

Before adjourning for the year earlier this month, Congress passed a provision in the omnibus tax extenders legislation (H.R. 6111) to extend current mental health parity law until the end of 2007. 

Under the provision, group health plans that provide medical and surgical care as well as mental health care would be barred from imposing coverage limits on mental health care that are not in place for other medical coverage. The provision would impose a $100 fine per day for violations. 

President Bush is expected to sign the legislation Dec. 20. 

The provision would cost $35 million over five years, according to a summary of the bill provided by the Senate Finance Committee. The House approved the measure, the Tax Relief and Health Care Act of 2006, Dec. 8; the Senate followed suit the following day. 

Legislation approved in 1996 requires group health plans that offer mental health benefits to set the same annual and lifetime caps on mental health coverage as for other medical/surgical services. 

Mental health advocacy groups said the 1996 law has loopholes that need to be closed by barring group health plans from requiring higher copayments, deductibles, and coinsurance payments for mental health services, compared to other health benefits. Groups such as the American Psychiatric Association have criticized Congress for merely passing extensions of the current law, rather than addressing the cost-sharing issues. 

Employer groups have countered that passing more sweeping mental health parity legislation would increase health care costs for businesses. 

Pamela Greenberg, chairwoman of the Coalition for Fairness in Mental Illness Coverage, which is comprised of provider and consumer associations, told BNA Dec. 19 that the coalition is pleased Congress extended the current law, but said broader changes are needed to put mental health care coverage on a par with other health care coverage. 

With Democrats in control of both the House and Senate for the 110th Congress, Greenberg said she is "very positive" the incoming Congress will pass mental health parity legislation, and is hopeful Bush would sign such a bill

Source: Bureau of National Affairs (BNA)