Release Date: May 18, 2000Contact: 888-249-NEWS


Chamber Urges Let Business Provide Mental Health Benefits Free of Mandates


WASHINGTON, DC – The United States Chamber of Commerce today urged the Senate to oppose legislation that would require health plans that include mental health benefits to cover them on a full parity basis with other health benefits.

"The Chamber strongly opposes any expansion of government mandates on the benefits employers voluntarily provide 155 million workers and their families," said Kate Sullivan, health policy director for the U.S. Chamber. "Businesses need the flexibility to design their benefit programs to meet the needs of their particular workforce, and mandates take away that flexibility."

"Employers recognize the value of investing in mental health evaluation and treatment for their workers," noted Sullivan. "Lost productivity due to depression, anxiety and substance abuse are major factors business is striving to overcome."

Some large employers are providing full parity in their health benefits programs, the Chamber noted. However, in order for full parity of mental health benefits to make fiscal sense for employers, they must have access to both a provider network and resource management options that can demonstrate cost-effectiveness. Employers are already grappling with medical inflation cost increases in the range of 12 to 20 percent.

Chamber surveys show that employers often increase co-payments or deductibles in order to mitigate cost increases. When workers have to bear more of the cost of their group health coverage, they opt out of insurance programs – jeopardizing their overall health status, warned Sullivan.

"A mandate to provide mental health benefits on the same basis as physical health will certainly mean that some employers will drop mental health benefits or scale back coverage for physical health," asserted Sullivan. "Parity for mental health benefits mean little when you have no health benefits at all."

The U.S. Chamber of Commerce is the world's largest business federation, representing more than three million businesses and organizations of every size, sector and region.

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