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LEGISLATIVE REPORT
By Larry Bourgerie
Legislative Director
March 4, 2008
Legislative Report Archive
IMPORTANT - Federal Legislative Alert!
YOUR SUPPORT IS NEEDED! Please write to your Legislators and urge
them to oppose H.R. 1424, the Paul Wellstone Mental Health and
Addiction Equity Act of 2007. The House of Representatives is
scheduled to vote on H.R. 1424 on Wednesday, March 5, 2008. This
legislation will substantially limit employers. flexibility in
designing health benefit plans and increase health coverage costs.
Background
In 1996, Congress enacted the Mental Health Parity Act to require
annual or lifetime dollar limits for mental heath benefits to be
equal to the limits for medical/surgical benefits offered by a
group health plan. The law applies only to group health plans that
offer both mental health and medical benefits.
In recent years, Congress has debated expanding coverage for mental
health and substance abuse conditions beyond the 1996 Mental Health
Parity Act. SHRM and HR professionals, ever wary of rising health
care costs, have carefully considered the impact various mental
health coverage bills will have on employers and employees. SHRM
has endorsed bipartisan, consensus legislation (S. 558, the Mental
Health Parity Act of 2007) that enjoys the support of employers,
health plans, and the mental health community. Unfortunately, the
House of Representatives is poised to consider mental health
legislation (H.R. 1424) that is much broader in scope and could
increase health care costs for employers and employees.
Legislation
H.R. 1424 is a bipartisan bill sponsored by Representatives Patrick
Kennedy (D-RI) and Jim Ramstad (R-MN). Key provisions of H.R. 1424
that are of concern to HR professionals include the following:
Benefit Mandate -- H.R. 1424 imposes a broad benefit mandate that
preempts lesser state mandates. Employers would be required to
cover all conditions in the Diagnostic and Statistical Manual of
Mental Disorders (including caffeine addiction or sibling rivalry).
Medical Management -- The bill lacks adequate protection for medical
management of benefits by allowing state laws to undercut medical
management. Employers rely on medical management of benefits to
ensure the quality of care and the affordability of coverage.
Preemption -- H.R. 1424 allows states to enact more extensive laws,
including an alternative remedy structure. Employers would face an
uneven patchwork of state requirements, increasing costs and the
complexity of benefit administration.
Network Coverage -- Employers rely on provider networks to encourage
higher quality care and lower coverage costs. H.R. 1424 undercuts
both of these objectives by mandating out-of-network coverage if
any other benefit is offered on an out-of-network basis.
Action Needed
Write or call your elected officials in Washington today! Your
U.S. Representatives needs to know your views on this important
matter before the private rights of employees are changed. To
write your elected official using HRVoice, follow these steps:
- Log onto SHRM Online by clicking here.
- Sign in using your member number and last name.
- Click on "Governmental Affairs," then go to "HRVoice" on
the left side of your screen.
- Choose "Write your elected officials".
- Click on "Urge Your Representative to OPPOSE H.R. 1424"
under the heading "Take Immediate Action on these Hot Issues".
Legislative Update Archive
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