its then it does not have to provide them. The federal law does not apply to benefits related to substance abuse. If a company deems it appropriate, they can make up the cost of covering mental health benefits by removing physical and surgical annual or lifetime ceilings, thus reducing mental health benefits. Other cost-containment strategies include deductible and co-payment increases or the reduction of hospital stays and therapist visits that are covered. There are also exemptions that apply to companies under MHPA. According to the law, any company that has 50 or fewer employees is exempt from the law. If a company can prove that it’s health care costs have increase by at least 1 percent then they can apply for an exemption. The company must use data provided from six months of operating experience under the new requirements to apply for and to show that there are monetary reason for exemption. If granted exemption, the company will continue to be exempt from the MHPA until September 30, 2001 regardless of any changes to the benefit’s structure. However, if a company fails to notify it’s health care plan participants it forfeits the right to an exemption. State Mental Health Parity LegislationThe MHPA of 1996 gave mental health advocacy groups new hope and a greater drive for mental health parity at the state level. Prior to the law there were only five states that had parity laws: Maryland, Minnesota, Maine, Rhode Island, and New Hampshire. Five more states added parity laws in 1997. These state laws went above and beyond what the federal parity law required. These states were Arkansas, Colorado, Connecticut, Texas, and Vermont. State employees of Indiana, Texas and North Carolina are covered under full parity benefits. It is important to note that state parity laws do not cover self-insured companies. This is due to the exemption claimed under the federal Employee Retirement Income Security Act o...
