Mental Health Parity and Addiction Equity Act Passes

By a vote of 263-171, the House this afternoon gave final passage to the Paul Wellstone-Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 as part of the Emergency Economic Stabilization Act (HR 1424). President Bush has already signed the legislation.

The law passed provides parity between medical-surgical and mental health and addiction benefits in plans that offer mental health coverage. It will prohibit health insurance plans sponsored by businesses with 50 or more employees from imposing day and visit limits or applying different deductibles, co-payments, out-of-network charges and other financial requirements for treatment.

The New York Times quoted Frank B. McArdle, a health policy expert at Hewitt Associates, a benefits consulting firm, who said the law would force sweeping changes in the workplace.

“A large majority of health plans currently have limits on hospital inpatient days and outpatient visits for mental health treatments, but not for other treatments,” Mr. McArdle said. “They will have to change their plan design.”

Federal officials said the law would improve coverage for 113 million people, including 82 million in employer-sponsored plans that are not subject to state regulation. The effective date, for most health plans, will be Jan. 1, 2010.