Position Statement of the Alliance of People with disAbilities on:

Mental Health Parity

Mental health is a critical element to be considered when caring for one’s overall health and needs to be treated as such in health insurance plans.  Insurance coverage of mental health services should be comparable to that of other health services.  For coverage to be considered comparable, it would need to have:

• The same co-pay rates for mental health services as used for other health services
• The same out-of-pocket requirements for all health services
• The same annual and lifetime dollar limits for all health services
• A single deductible for mental health and other health services
• Limitations for mental health services could only be imposed if also done for other health services (including limits on number of visits)

Mental health parity not only benefits the health of individuals in need of mental health services, but it is also a cost-effective choice for the community.  According to the National Institute of Mental Health, untreated mental health disabilities cost the U.S. about $300 billion a year, including costs associated with social welfare and criminal justice.  Untreated mental health conditions have led to financial losses in the way of absenteeism and lost productivity on the job.  One study done by MIT in 1995 related clinical depression alone to $29 billion in losses in those two areas.  Alternatively, states that have required parity of coverage have only seen 1 to 2 percent increases in costs under well-managed plans.  One area where there is a substantial potential for cost savings with mental health parity would be in the likely reduction in the length of hospital stays and in public hospital admissions.  It is also estimated that the number of days that youth with mental health disabilities spend in detention would decrease by 40 percent (Coalition for Fairness in Mental Health Coverage), which saves money and is beneficial to the youth involved. 

Mental health parity would allow individuals with mental health disabilities to lead more productive, independent lives.  Over the long-term, it would create significant financial savings for our community, as less emergency resources and miscellaneous supports would be needed by individuals with this type of disability.  Mental health parity is a sensible choice, and the right choice for our community and for Washington State. 

The Alliance’s Staff and Board

February 2004