Washington State House Democrats

Schual-Berke calls for ‘Mental Health Parity’

New law proposes to end insurance discrimination against mental illness

January 17, 2005

OLYMPIA--State lawmakers today introduced legislation to dismantle insurance discrimination against people with mental illness.

The legislation would bar insurers from requiring higher co-pays, deductibles or other out-of-pocket expenses for mental health treatment than they require for other medical services. Discriminatory limits on treatment days, doctor visits and coverage for catastrophic expenses would also be banned.

"This law says that people with mental illness have as much right to medical care and respect as people with other illnesses, and that mental health services are just as vital to overall health as other medical or surgical services," said Shay Schual-Berke, D-Normandy Park, the lead sponsor of the reform bill. "Our citizens, businesses and communities simply cannot afford the terrible price we’re paying for untreated mental illness due to these barriers. When you combine the minimal costs of parity with the benefits of happier and more productive employees, parity will save businesses money."

This is widely expected to be the year when mental health parity becomes the law in Washington. Gov. Christine Gregoire and leaders of the Democratic majorities in the House and Senate have all expressed strong support for the legislation, which also has Republican co-sponsors and supporters.

House Bill 1154 has already been scheduled for an 8 a.m. public hearing on Tuesday, Jan. 18, in the House Financial Institutions and Insurance Committee.

Mental illness can strike anyone at any time. In a typical year, one in five Americans experiences a diagnosable mental illness. But less than one-half of adults and less than one-third of children with a diagnosable mental illness receive the treatment they need in any given year.

Untreated mental illness is especially devastating to children. It is the leading cause of hospitalization for children between the ages of five and 19 in Washington and a major reason why suicide has become the second-leading cause of death among Washington’s adolescents, according to Schual-Berke, a retired cardiologist who is the only medical doctor currently serving in the House of Representatives.

Businesses also pay a high price for discriminatory insurance policies that create barriers to mental health treatment. The U.S. Surgeon General estimated in 1999 that the lack of insurance parity for mental illness costs American businesses at least $70 billion a year in absenteeism, lost productivity and increased pay-outs for disability and unemployment insurance. This is why many Fortune 500 companies have voluntarily embraced parity as a smart investment in their bottom lines.

"Scientific research shows that mental illness is just as disabling and more likely to respond to treatment than many other forms of illness afflicting children or adults," said Schual-Berke. "There is no excuse for allowing discrimination against the mentally ill to continue."

In past years, opponents of mental health parity legislation have alleged it would add significant costs to health insurance. But at least 33 other states have already enacted some form parity legislation, and their experience shows that parity typically results in premium increases of less than one percent.

The parity legislation introduced today includes several provisions to further reduce costs, including a gradual phase-in of the requirements and exemptions for Medicaid, the individual insurance market, and small businesses with 50 or fewer employees. According to a November 2004 actuarial analysis prepared by Ron Bachman of PricewaterhouseCoopers, the parity legislation introduced by Schual-Berke on behalf of the Washington Coalition for Insurance Parity would increase health insurance premiums by less than one-half of one percent.

This is the eighth year that mental health parity law has been proposed in Washington. Last year, Democrats and Republicans in the House of Representatives voted 64 to 33 to enact parity legislation proposed by Schual-Berke, but the bill died in the Senate.

To date, more than 100 state organizations, including AARP and the Washington State Medical Association, have joined the Washington Coalition for Insurance Parity to support mental health parity.

"I’m proud we introduced the mental health parity bill on the day we celebrate the life of Martin Luther King, Jr.," Schual-Berke said. "I know Dr. King would have agreed that we have a duty to end discrimination against people battling mental illness."