New York State Senate Passes Mental Health Parity
by Deb Warner, Director of Government Affairs, Greater Syracuse Chamber of Commerce

After several years of lobbying, the New York State Senate and Assembly reached agreement on a compromise version of this new health coverage mandate.  The Senate recently returned to Albany to pass the bill. The Assembly is expected to return before the end of the year for their vote.  Proponents have been persistent in their efforts to enact a state mandate that mental and emotional ailments be covered on par with physical ailments in all health care policies in New York.  However, this legislation, like other state mandates, does not apply to groups that self insure.

The bill’s requirements spell out a list of disorders covered on an unlimited basis with special emphasis on children.  For children under 18, policies would cover attention deficit/hyperactivity disorders, disruptive behavior or pervasive development disorders where there are serious symptoms of suicide or other life-threatening destructive behavior; significant psychotic symptoms, behaviors caused by emotional disturbances that place a child at risk of personal injury, etc.   Not included are treatments for drug and alcohol additions. 

Insurance companies will have to cover 30 inpatient days and 20 outpatient days of treatment per year.  Coverage is mandated for “biologically based” mental illnesses, such as schizophrenia/psychotic disorders, major depression, bipolar disorder, delusional disorders, panic disorder, obsessive-compulsive disorder, bulimia, anorexia and binge eating. 

In response to concerns voiced by the small business community, the agreement requires the state superintendent of insurance to develop a means to hold businesses with fewer than 50 employees harmless from any increase in costs resulting from this act.  Also required is a utilization analysis for two years to assess effectiveness.  If approved, as expected by the Assembly and Governor, it will take effect on January 1, 2007 and sunset on December 31, 2009.

How much will this cost?  Most expect a premium increase of one to two percent.  Estimates for the cost to taxpayers of the small business subsidy range from $30 to $90 million, with more agreeing in the area of $60 million.  Proponents have made a strong case that businesses will benefit with increased wellness and productivity of their employees and families.

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