Mandatory Health Insurance Coverage of Certain Mental Illnesses

House Bill 973 Becomes Law

July 30, 2007

MECKLENBURG COUNTY NC NEWS -- The North Carolina Governor has signed into law House Bill 973, "An act to require mandatory health insurance coverage of certain mental illnesses and to require at least a minimum benefit package for other mental illnesses." This new law requires insurance companies to cover mental illness in the same way they cover treatment for physical illness.

Health insurance policies currently can have different co-payments and other areas of coverage for mental illness than for physical illness. Many times the co-payments and coverage fees are greater for mental health treatment. The legislation requires that full parity with physical illnesses be extended to major mental health conditions including:

• Bipolar disorder
• Major depressive disorder
• Anorexia nervosa
• Bulimia
• Schizophrenia
• Paranoia
• Post-traumatic stress disorder
• Obsessive compulsive disorder

Governor Easley said, "This legislation ends what has effectively been a form of discrimination in the health insurance coverage of those with mental illness. Requiring insurers to provide the same coverage for co-payments, doctors visits and hospitalization means patients will be treated fairly, whether being seen for physical or mental illnesses."

North Carolina House Representative Martha Alexander of Mecklenburg County, the bill's primary sponsor said: "Today is an historic day for the citizens of North Carolina. For too many years we have been unfair to those with mental illness and now these patients will be treated on par with other patients and not discriminated against." The bill was carried in the North Carolina Senate by Senator Martin Nesbitt of Buncombe County.

The act becomes effective July 1, 2008. The legislation passed the House of Representatives 116-1 and was approved in the Senate on a 36-12 vote. Unfortunately, forcing the North Carolina health insurance industry to adopt price standards will result in the difference between these fees to be past onto the consumer in another form. One possible form would be a higher health insurance premium payment.