The Act provides for mental health parity under certain conditions. The Act applies to individual, small group, and large group policies; self-insured companies are exempted from the Act. In general, an employer is not required to offer mental health insurance coverage. However, if such coverage is offered, the Act provides that coverage of mental health disorders must be as extensive, provide the same degree of coverage, and provide the same annual lifetime dollar limits as coverage of physical disorders. Under the Act, separate deductibles and separate out-of-pocket limits continue to apply under small and large group health insurance plans. Additionally, the Act permits different limits on inpatient and outpatient treatment days for mental health disorders under individual and small group plans. Moreover, for all plans except individual plans, the Act has a built-in repeal date of January 1, 2000, if parity for mental health disorders causes an increase of insurance premiums exceeding two percent.
"INSURANCE Insurance Generally: Prohibit Disparate Insurance Coverage Between Physical Disorders and Mental Health Disorders Under Certain Conditions,"
Georgia State University Law Review: Vol. 15
, Article 13.
Available at: http://readingroom.law.gsu.edu/gsulr/vol15/iss1/13