ARIZONA STATE SENATE
insurance; mental health
parity
Requires that group health
insurance providers that offer physical health coverage also offer mental
health coverage.
Background
In 1996 President Clinton
signed a parity amendment into law as part of the VA-HUD appropriations bill,
which prohibits health insurers from imposing restrictive annual or lifetime
limits on spending for mental illness than on coverage of physical illness.
This legislation is in response to the growing need for comparative mental
illness health coverage according to studies conducted by the U.S. Surgeon
General. The federal legislation applies to group health plans purchased by a
business with 51 or more employees. Small businesses are exempt from the mental
illness parity requirement.
S.B. 1088 requires parity
between an insurer’s mental and physical healthcare coverage.
There is no fiscal impact
associated with S.B. 1088 according to the Joint Legislative Budget Committee
Staff.
Provisions
1. Requires insurance providers that issue group health care plans to also provide coverage for mental health conditions.
2. Prohibits health care insurers from discriminating against a subscriber with a mental health condition by including a co-payment, co-insurance or cost-sharing requirement.
3. Requires deductibles and payment limits to be comprehensive and apply to coverage of mental and physical health conditions.
4. Designates the Director to carry out the rules for mental health coverage.
5. Prescribes definitions.
6. Makes technical corrections.
7. Provides for a general effective date.
Prepared by Senate Staff
February 27, 2001