Most private and public health insurance policies and programs discriminate against persons with mental illnesses by providing more restrictive coverage for their treatments than the coverage provided for treatments of other medical conditions. Insurance parity legislation requires health insurance plans to provide treatment for mental illnesses equal and commensurate with that provided for other major physical illnesses. The North Carolina State Employees Health Plan has required a mental health parity benefit since 1991. Substance abuse parity was added in 1997. The plan experienced cost decreases subsequent to implementation of parity.

Legislation to require mental health parity for group policies in North Carolina was first introduced in 1993 and every subsequent session of the General Assembly. The NC Senate approved a Mental Health Parity bill in 1997. The NC House has never allowed a committee vote on a parity bill. The powerful business and insurance lobbies have been successful in blocking the legislation. Their arguments against the legislation have changed over the years. Opponents have raised concerns about the reliability of diagnosis, the effectiveness of treatment, and cost of parity coverage. In each instance, research and actual experience in both North Carolina and other states have disputed these claims. Opponents now cite opposition to any type of mandate for coverage, stating that the cumulative effect will be to drive insurance costs up. Supporters of parity counter that without a mandate, only those needing coverage will buy it, creating a situation called adverse selection, which drives costs prohibitively high. Mandated coverage allows the cost of insurance to be spread out and remain affordable.

The federal government also is considering legislation to require mental health insurance parity. Passage of such legislation would rejuvenate efforts at the state level to pass similar legislation.

NAMI North Carolina will support parity legislation if it is introduced into the North Carolina General Assembly. We also will work to support federal legislation to require insurance parity for mental health benefits.