ARLINGTON, Va. (June 9, 2009) — Employers responding to an online survey indicate they will continue to offer mental health or substance use disorder coverage when a new federal law requiring employers to provide parity between medical/surgical and mental health/addiction benefits goes into effect Jan. 1.
The survey, conducted by the Partnership for Workplace Mental Health, a program of the American Psychiatric Foundation, was designed to better understand current corporate benefit design and what kinds of changes employers intend to make in order to comply with the law.
The survey found that 74 percent are not considering dropping mental health and 77 percent are not considering dropping substance use disorder coverage as a result of the law.
The Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act will require employers to make a number of benefit design changes, and according to the survey, the features most often changed will be co-pays and outpatient visit limits. Employers also indicated that they plan to increase use and promotion of wellness and employee assistance programs.
“The survey provides a nice snapshot of how employers intend to respond to the implementation of the law,” said Alan A. Axelson, M.D., co-chair of the partnership’s Advisory Council and medical director of InterCare Psychiatric Services in Pittsburg. “The results tell us that employers understand that mental health is an essential component of health.”
The survey received a total of 143 responses primarily from human resource, benefits and employee assistance professionals representing employers of diverse sizes. More than three-quarters are covered by the Employee Retirement Income Security Act.
“The business case for quality mental health care is there. Employers see the facts in the medical journals, in the business literature, and directly in their own workplaces,” said William L. Bruning, J.D., M.B.A., co-chair of the partnership’s Advisory Council and president and CEO of the Mid-America Coalition on Health Care in Kansas City.
“The current economic climate has exacerbated existing workplace mental health issues,” Bruning said. “Today it’s more important than ever to maximize employee productivity. When employees who need mental health treatment receive it, productivity increases.”
The Partnership for Workplace Mental Health sent the survey to approximately 1,000 employers. In addition, several employer organizations including the Mid-America Coalition on Health Care, Midwest Business Group on Health, Employer Health Care Alliance, New York Business Group on Health, Center for Health Value Innovation and the Disability Management Employer Coalition sent the survey link to their members.
The legislation affects health plans sponsored by businesses with more than 50 employees that offer mental health/addiction coverage. The law applies to all financial requirements, including deductibles, copayments, coinsurance, and out-of-pocket expenses, and to all treatment limitations, including frequency of treatment, number of visits, days of coverage, or other similar limits. Previous legislation passed in 1996 provided limited parity only on lifetime and annual dollar limits.
The Partnership for Workplace Mental Health advances successful employer approaches to mental health by combining the knowledge and experience of the American Psychiatric Association and a wide range of employers.
The survey results report can be accessed at:
http://www.workplacementalhealth.org/pdf/EmployerParitySurveyResults20090528.pdf