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March 5, 2008

Mental Health Parity Bill Passed by U.S. House

On March 5, the U.S. House of Representatives approved HR1424, an expansions of the Mental Health Parity Act of 1996, which would prevent group health plans that offer mental health benefits from imposing treatment or financial limitations for mental health that differ from those set for medical/surgical services. In addition, the bill would ban physician self-referral to hospitals in which the physician has a financial interest. The Senate passed its version (S558) of parity legislation last fall. The House bill would require more conditions to be covered by insurers than the Senate bill, sparking opposition by some insurance and business groups. The two chambers need to work out the differences in conference committee.