Congressional Digest

Congressional Digest January 2002 No. 1 Vol. 81
Cost of Proposed Legislation

Mental Health Parity

Eliminating Inequities in Benefit Coverage

Cost of Proposed Legislation

Congressional Budget Office Estimates

The Mental Health Equitable Treatment Act of 2001(S. 543) would prohibit group health plans and group health insurance issuers that provide both medical and surgical benefits and mental health benefits from imposing treatment limitations or financial requirements for coverage of mental health benefits that are different from those used for medical and surgical benefits. The bill would affect the Federal budget because it would result in higher premiums for employer-sponsored health benefits. Higher premiums, in turn, would result in more of an employee’s compensation being received in the form of nontaxable employer-paid premiums, and less in the form of taxable…

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