NEWS RELEASE

March 4, 2008
PR-08/03
For additional information:
Jason Hammersla
202-289-6700

House mental health “parity” bill treats behavioral conditions
differently than other medical and surgical services

WASHINGTON, D.C. — As the House of Representatives prepares to consider The Paul Wellstone Mental Health and Addiction Equity Act (H.R. 1424) this week, American Benefits Council president James A. Klein urged the rejection of the bill’s burdensome approach and praised the more balanced, collaborative Senate-passed measure.

“The American Benefits Council believes strongly in health plan coverage parity for behavioral and other health conditions,” Klein said. “Unfortunately, H.R. 1424 does not promote parity because it would treat coverage for mental and behavioral conditions differently than coverage for other medical and surgical services. The House bill specifies all of the mental and behavioral conditions and services that must be covered if an employer provides any mental health coverage, although, wisely, such detailed requirements do not exist under law for medical and surgical conditions and services. Moreover, unlike the measure passed unanimously in the Senate, the House bill’s sponsors have steadfastly resisted including language making clear that vital medical management techniques are not to be prohibited under the new law. The House bill also allows the states to impose additional remedies in disputes involving mental health benefits than apply for other types of benefits; whereas the Senate bill recognizes that true parity means that the remedies should be the same regardless of the type of benefit involved or the type of plan under which a person is covered,” said Klein.

“The unintended result if the House bill becomes law could be to compel employers to either reduce health plan coverage generally, or eliminate mental health coverage altogether in order to offset the added cost and complexity of compliance,” noted Klein.

As Klein wrote in a March 3 letter to House leadership, it is essential that employers have flexibility in plan design with respect to benefits in and out of network, protection of the ability to ensure quality care through medical management practices, and federal uniformity in plan administration and remedies. “H.R. 1424 fails to meet these critical requirements for continued health plan sponsorship,” Klein said.

The Mental Health Parity Act (S. 558), approved by unanimous consent in the Senate was developed with employers and insurers and mental health advocates, embodies a more practical approach. “We are privileged to have worked with Senate sponsors Edward Kennedy (D-MA), Pete Domenici (R-NM) and Mike Enzi (R-WY), who appreciate the need to provide parity in a way that does not impede plan sponsorship,” Klein said.

“The Council and its members believe that fair treatment of mental and addiction disorders is vital to a healthy and productive workforce, but H.R. 1424 would only undermine the fundamental framework necessary for all employer-sponsored health benefits,” Klein said. “Only the Senate measure takes the correct approach to creating parity for mental health treatment while preserving reliable coverage for employees.”

To arrange an interview with a Council staff member, please contact Jason Hammersla, Council director, communications, at jhammersla@abcstaff.org or by phone at (202) 289-6700.

The American Benefits Council is the national trade association for companies concerned about federal legislation and regulations affecting all aspects of the employee benefits system. The Council’s members represent the entire spectrum of the private employee benefits community and either sponsor directly or administer retirement and health plans covering more than 100 million Americans.