Cost of mental health coverage parity not known

Legislation passed by Congress last week to require insurers to cover mental illness the same as they cover physical conditions will likely increase premiums, although the amount of the increase is uncertain  (Source: “Cost estimates vary on Mental Health Parity law,” Los Angeles Times, Oct. 13, 2008).

The Congressional Budget Office estimates group health care premiums will rise 0.2 percent to 0.4 percent, on average. However, other studies estimate that the increase could be as much as 5 percent.

On the other hand, an argument can be made that properly managing mental health could actually reduce costs. Dr. Nada Stotland, president of the American Psychiatric Association, said people with untreated mental illness are more susceptible to physical illnesses such as heart attacks.

"It is not cost effective" to separate mental and physical health care, she said. "We cannot separate the body and the mind."