Congress mandates insurance coverage for mental illness

A bill requiring insurance companies to provide the same level of coverage for mental and physical illness was passed by Congress as part of the $700 billion economic rescue package (Source: “Congress passes law forcing equal insurance coverage for mental illness,” Dayton Daily News, Oct. 6, 2008). 

"This is a major victory for the treatment of mental health issues and mental illness," said Sue Hanna, executive director for the Montgomery County chapter of the National Alliance on Mental Illness.

The new law, effective Jan. 1, 2010 for most health plans, forbids restrictions and higher co-payments and deductibles for treatment of mental conditions.

Federal officials said the law would improve coverage for more than one-third of all Americans, or 113 million people, including 82 million in employer-sponsored plans that are not subject to state regulation.

The Congressional Budget Office estimates that the new requirement will increase premiums by an average of about two-tenths of 1 percent. Businesses with 50 or fewer employees are exempt.