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Congress Moves on Mental Health Parity Legislation

Released on October 15, 2007

On Tuesday, September 18, the Senate passed legislation that would require equal health insurance coverage for mental and physical illnesses when policies cover both. The bill (S. 558) was passed by unanimous consent after it was amended so it would not pre-empt tougher state mental health parity laws. Businesses with fewer than 50 employees will not be impacted by the legislation.

NADCA members should be aware the Senate bill includes a cost exemption for businesses. Health plans can be exempted from the parity requirements if they are projected to have increased health care costs exceeding 2 percent of total plan costs during the first year or exceeding 1 percent of the total plan costs each subsequent year, according to a summary of the legislation provided by lawmakers. The Congressional Budget Office (CBO) has estimated that mental health parity will increase employers' health care costs by less than 1 percent.

The House Ways and Means Committee and Education and Labor Committee also approved the House version of the bill (H.R. 1424) in October, 2007. The House version is similar to the Senate bill but has a few key differences. It contains a broader definition of what mental health conditions must be covered and would also take effect on January 1, 2008, rather than a later date specified by the Senate. The legislation, which has well over 270 cosponsors, is expected to pass easily when voted on by the entire chamber.

Upon passage in the House and Senate, the differences in both versions of the legislation must be resolved in a conference committee. House and Senate aides say the final version of the legislation will closely resemble the Senate bill.

For more information, contact Alicia Oman, Metalcasting Industry Government Affairs Washington Office, at 202/898-1444 or ao@wafed.com.