Law ends restrictions to mental health care

A federal law designed to guarantee parity in mental health insurance coverage has sparked a heated debate between business leaders and mental health advocates.

Earlier this year, the Obama administration issued 154 pages of regulations governing implementation of the law, which was passed with broad bipartisan support and signed by President George W. Bush in 2008. The rules are scheduled to take effect on July 1.

The law applies to employers with more than 50 employees and is designed to end what Health and Human Services Secretary Kathleen Sebelius called “needless and arbitrary limits on care.” Higher deductibles, steeper co-pays and other restrictions are no longer allowed for mental health and substance abuse treatment. The law does not apply to individual insurance policies, nor does it require group plans to provide mental health and substance abuse treatment, although most already do.

Officials of key business and insurance industry groups have said that they were displeased that the regulations were “more expansive” than they believe lawmakers intended.

Mental health advocates applauded the rules.