labor lawAdivision of labor law center

Mental health has been put on a par with other medical conditions.

This will have effects across the board for employees covered by Colorado employee benefit plans.

Groups health insurance plans can no longer put a limit on mental health treatments that are far lower than those put on other medical treatments.

This is because the Mental Health Parity Act, also known as the MHPA, has been extended through December 31, 2007 under a law signed by the president.

A sunset clause that was included in the original bill allowed the bill to expire on Sept 31, 2001. But due to amendments, 5 times in all, the expiration date has been extended.

Before the Mental Health Parity Act, employees could expect limits on medical treatments up to $100,000 or more per year. But if an employee found themselves in need of treatment for a mental health problem, they would have found that the limits might be as low as $5,000 - $10,000, or even lower.

The Mental Health Parity Act now makes this illegal. This law means that mental health must be funded in the same way and to the same limits as other medical conditions.

What can these new funding limits be used for?

They can be used for all manner of mental health treatments. These might include time spent in rehab clinics for alcohol or drug related dependency, or regular visits to a psychologist, psychiatrist or other licensed therapists.

If you have to stay in hospital to be treated for depression or mental health ailments these will be covered too. These might include schizophrenia or post-traumatic stress disorder.

The Mental Health Parity Act will have a far reaching effect on workers throughout the United States. There are over 150 million workers throughout the US that are covered by group health insurance plans. The law means that they no longer have to struggle with obtaining treatment due to cost.

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