3. History of Legislation Before the 1960s, there was no specific definition for mental health in insurance policies (Lindstrom, 2014). Mental health and overall health care were not distinguished by employee-sponsored insurance. The benefits of overall health care rarely included mental health. Consequently, plans began leaving out mental health coverage completely. In the 1970s and 1980s, plans that still implemented mental health began including more restrictions. Many people suffering with mental illness were left homeless, unemployed, or incarcerated because they were not able to afford mental health services (Lindstrom, 2014).
Congress passed the Mental Health Systems Act in the 1980s but was quickly repealed by Reagan and funding …show more content…
439). Bush formed the New Freedom Commission on Mental Health in 2002. The point of the Commission was to study the mental health system and provide recommendations for ways to improve the system without increasing costs. Although the study found that there was a possibility to recover from mental illness, they also saw that policies were so disjointed that they compared it to a “patchwork relic” (Mantel, 2013). After the commission was presented to the public Bush declared three barriers to mental health care: “stigma, the fragmented delivery system and private health insurance plans’ often unfair treatment limitations and financial requirements on mental health benefits. Insurance companies must treat mental illness like any other disease” (Mantel, 2013, p. …show more content…
There are laws that establish minimum standards for health plans that must follow parity. For example, plans that must follow parity include group plans offered by employers with at least 51 or more employees and most plans purchased through Health Insurance Marketplaces (2015). Federally funded programs that are required to follow parity also include the Federal Employees Health Benefits Program, Medicaid Managed Care (MCOs), and State Children’s Health Insurance Programs (2015). Most employers will cover mental disorders due to general medical condition, substance related disorders, schizophrenia and other psychotic disorders, mood disorders, and anxiety disorders (Mental Health Parity Law Strengths and Limitations, 2011.). According to the MHPAEA, some of the major benefits and services that must be covered equally by plans include, but are not limited to, emergency care, residential treatment, prescription drugs, deductibles, intensive outpatient services, and hospitalization
Congress passed the Mental Health Systems Act in the 1980s but was quickly repealed by Reagan and funding …show more content…
439). Bush formed the New Freedom Commission on Mental Health in 2002. The point of the Commission was to study the mental health system and provide recommendations for ways to improve the system without increasing costs. Although the study found that there was a possibility to recover from mental illness, they also saw that policies were so disjointed that they compared it to a “patchwork relic” (Mantel, 2013). After the commission was presented to the public Bush declared three barriers to mental health care: “stigma, the fragmented delivery system and private health insurance plans’ often unfair treatment limitations and financial requirements on mental health benefits. Insurance companies must treat mental illness like any other disease” (Mantel, 2013, p. …show more content…
There are laws that establish minimum standards for health plans that must follow parity. For example, plans that must follow parity include group plans offered by employers with at least 51 or more employees and most plans purchased through Health Insurance Marketplaces (2015). Federally funded programs that are required to follow parity also include the Federal Employees Health Benefits Program, Medicaid Managed Care (MCOs), and State Children’s Health Insurance Programs (2015). Most employers will cover mental disorders due to general medical condition, substance related disorders, schizophrenia and other psychotic disorders, mood disorders, and anxiety disorders (Mental Health Parity Law Strengths and Limitations, 2011.). According to the MHPAEA, some of the major benefits and services that must be covered equally by plans include, but are not limited to, emergency care, residential treatment, prescription drugs, deductibles, intensive outpatient services, and hospitalization