MENTAL HEALTH PARITY

June 1999
		Should health insurance agencies have to cover treatment for mental health? The president of the Health Insurance Association of America, Chip Kahn, and the executive director of the National Alliance for the Mentally Ill, Laurie Flynn, take your questions.

Forum Introduction What is included in the Domenici-Wellstone measure? How will private policies react to federal changes? Does parity really drive up costs? Is expense the deciding factor? How much coverage do people have now?

George Tally of Rockville, MD, asks: How will the change in federal health plans affect other programs? Are private providers likely to follow suit? Laurie Flynn responds: The Federal Employees Health Benefits Program (FEHBP) covers 9.5 million persons and is administered through a selection of private insurance plans. As the largest health insurance program in the country, FEHBP traditionally serves as a model---or "pace setter"---for the private insurance market. President Clinton's initiative to require mental health parity for FEHBP plans is an important step forward in seeking to establish parity throughout society. At the same time, NAMI would like to see the President go even further and require private contractors who do business with the federal government to guarantee equal treatment of mental illnesses in the health insurance they provide to their own employees. We would like to see parity advanced on all possible fronts, through all possible action, as was the case with the civil rights movement in the 1950s and 60s. Chip Kahn responds: Benefit changes made to the federal health insurance programs have no direct impact on the programs offered by private employers. There may be some indirect impact over time as private employers and health plans observe the costs incurred by the federal plans. If the costs are lower than expected, that may encourage more private plan sponsors to follow suit. If on the other hand they are higher than expected, it may discourage further benefit expansions in the private sector. Also, since employers compete for workers, if the labor market continues to be tight and it becomes evident that most workers value this benefit, more private employers can be expected to offer expanded coverage as a way to attract and retain workers.