No Cost Hikes From New Hampshire Insurance Law

No overall cost increases were reported as a result of a 1995 NewHampshire, USA, law requiring equal health insurance coverage for severe mental illnesses, according to a survey of the state's insurance providers released by the National Alliance for the Mentally Ill.

Despite the claims that the law would cause premiums to skyrocket, the companies reported no change at all due to parity, it was noted. The law required insurers to provide benefits for the treatment and diagnosis of certain biologically-based mental illnesses under the same terms and conditions, and which are not less extensive than, coverage provided for any other type of health care for physical illness.

The survey's questions dealt with use of services, costs, premiums and the extent to which mental health parity was an issue in negotiations with employers, or was a complaint from employers and customers. The parity law was found not to have been a factor in negotiating premiums or benefits with employers. Moreover, no carrier or health plan reported concerns expressed by either employers or consumers relating to the implementation of the new legislation.