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New rules could limit insurance coverage
for the mentally ill posted 11-3-97 The Clinton administration is drafting new rules that could allow many employers to exempt themselves from a landmark law that will require them to provide mental health benefits for employees at the same level as other medical benefits. The Mental Health Parity Act, which passed last year with Clinton’s support, was hailed by mental health advocates as a victory for millions of Americans with mental illnesses. The law prohibits group health plans from imposing lower limits on mental health benefits than on benefits for physical illnesses. Under the law, which takes effect Jan. 1, employers would be exempt if their costs increased more than 1 percent after a year of complying with the parity requirement. Under the new rules, employers could obtain exemptions based on estimates of future costs, rather than on actual costs after a year of complying. Administration officials said they hope most employers would find it easier to comply than to seek exemptions. Mental health advocates say that many employers have already taken steps to comply and that the parity mandate is a step toward eliminating insurance discrimination against the mentally ill. Employers that oppose the mandate say it will increase costs and deter them from offering any mental health benefits at all, and from expanding insurance coverage to more employees. |
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