Washington State House Democrats

House passes historic reform to end mental health discrimination

January 28, 2005

OLYMPIA–An eight-year effort to dismantle insurance discrimination against the mentally ill in Washington drew close to the finish line today as the state House of Representatives voted 67-32 to pass mental health parity legislation proposed by Rep. Shay Schual-Berke, D-Normandy Park

All Democrats present were joined by 16 Republicans in support of the measure, which would prevent insurance plans from requiring higher co-pays, deductibles, treatment limits or other out-of-pocket costs for mental health services than are required for other medical services.

"It is time to stop inflicting upon ourselves this insane, artificial distinction between mental health and physical health," Schual-Berke said. "It is time for us to recognize the cost to the taxpayer of leaving mental illness untreated."

One of five persons suffers from a diagnosable mental illness, but less than one-half of adults and less than one-third of children receive the treatment they need for mental illness in any given year.

"Think about the kids," said Rep. Mary Lou Dickerson, D- Seattle. "The leading cause for the hospitalization of children in this state is mental illness, and suicide is the second-highest cause of death" among adolescents.

A number of speakers in the debate cited enormous business and social costs associated with untreated mental illness. In 1999, the U.S. Surgeon General estimated that insurance discrimination against mental illness and mental health treatment costs American businesses more than $70 billion annually in lost productivity and higher payouts for unemployment and disability claims.

"We cannot afford to allow our businesses to continue paying these tremendous costs that are incurred from leaving mental illness untreated, and we cannot afford to let the taxpayers bear the burden any longer," Schual-Berke said.

The legislation passed by the House today includes several provisions to ease the costs to businesses, including a gradual phase-in of requirements and exemptions for small businesses and for treatments that are not deemed medically necessary.

An actuarial analysis of the legislation showed it would affect insurance premiums by less than one-half of one percent.

A recent statewide survey showed 79 percent of Washingtonians support mental health parity. The measure is widely expected to pass the Senate and be signed into law before the end of the 2005 legislative session.

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