In the midst of so much uncertainty and dismay over how Congress would handle the current economic crisis, a victory of no small proportion was achieved. Both Houses of Congress passed a measure – the Paul Wellstone and Pete Domenici Mental Health and Addiction Equity Act of 2008 – that will provide mental health and substance abuse parity in private insurance coverage. It was tacked on to the Wall Street bailout legislation. The President has expressed his support and intent to sign it. While this Act pertains exclusively to private insurance, we know that the insurance industry informs the way public insurance coverage is provided, and vice-versa.

“Parity” means that all mental health benefits must be covered on “par” with all other health care. Specifically, 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. It builds on the 1996 Parity Act, which provided limited parity for lifetime and annual cost limits. This will end discrimination in health insurance for the millions of people who need mental health care and addiction treatment. For too long, millions of Americans have delayed or entirely avoided seeking the care and services they need because of high out-of-pocket costs and inequitable restrictions on treatment. This has undoubtedly resulted in thousands of lost jobs, foreclosed homes, and most unfortunately, suicides.

In 2006, New York State enacted Timothy’s Law, named after Timothy O’Clair, a young man from Schenectady, NY who committed suicide in 2001, seven weeks prior to his 13th birthday. His suicide was attributed to the discrimination that he faced at the hands of his parents’ insurance company, as the benefits offered to his family were not sufficient in getting Timothy the care and services he needed to keep him healthy. Timothy’s Law is not as comprehensive as it could be, and efforts will continue to enhance it, including urging the state to add post-traumatic stress disorder to the definition of what is covered under the law. We can be proud, however, that New York joined the short list of states that stood up for its residents with mental health needs, leading the way for other states and the Federal government to follow.

It is clearly unacceptable for insurers to have spent decades setting higher co-payments and deductibles and stricter limits on treatment for addiction and mental illness. There is no doubt that they have gotten away with creating this disparity because of the enormous stigma around people with “mental illness”. The medical community has confirmed repeatedly that there is no difference, and it has taken many years, significant advocacy efforts and acts of Congress to turn that fact into what is acceptable by society and upheld by law.

Click here for a very informative article from the New York Times about this new law: http://www.nytimes.com/2008/10/06/washington/06mental.html?ei=5070

For information about mental health parity in New York State, visit the Timothy’s Law Campaign website at: www.timothyslaw.org.