The Mental Health Parity Act is a federal statute that applies to group health plans with over 50 workers. It states that if these plans offer coverage for mental health conditions, they must provide benefits that are equivalent in value to the benefits offered for physical health coverage.
This sounds like a huge victory for Americans with mental health conditions. However, it is important to note that this law does NOT require large group plans to provide mental health coverage at all - it merely states that if the plans choose to do so, they must offer benefits that are equivalent in value. Some health policy experts believe that insurers will take advantage of this loophole by discontinuing mental health benefits entirely instead of providing more robust coverage.
The law also does not mandate coverage of all mental disorders recognized by the psychiatric community - it only requires that the dollar amount of coverage be equivalent. It is possible that benefits for specific disorders could be excluded.
Thus, the Mental Health Parity Act will provide some Americans with more comprehensive coverage of mental health conditions. However, there is room for improvement. For example, the Act does not actually mandate mental health coverage, so it is possible that many Americans could find themselves in health plans that offer no mental health benefits at all. Furthermore, this law only applies to large job-based health plans, so people who work for smaller employers - as well as those who purchase their own individual policies - may still have difficulty obtaining coverage for their mental health care needs.
