In 1996, the United States Congress enacted a number of important measures affecting health and health care insurance coverage, including one of particular interest that addressed medical benefits and the mentally ill. More specifically, the Mental Health Parity Act of 1996 requires employers to increase dollar limits for mental health coverage to the equivalent of the limits for medical care.
             Although this new mental health parity law is viewed as a victory for the mentally ill and mental health advocates, it is widely considered to be narrow in scope. In addition to other limitations, this law does not impose any conditions on deductibles, copayments, or limits on days or visits. Therefore, the law does not provide parity, in the true definition of the word, and does not completely eliminate discriminatory coverage. Rather, this law is viewed more as a historic first step toward equalizing health insurance plan coverage for treatment of mental illnesses and other medical conditions.
             Because of the limitations of the federal provision, a growing number of states have decided to explore this issue more comprehensively and now require at least some level of insurance coverage for mental illnesses. The measure to be under consideration is designed to cover any condition or disorder involving mental illness, and alcohol or substance abuse. Further, the legislation requires that annual and lifetime limits, as well as deductibles and out-of-pocket expense limits for treatment of mental illnesses, be equal to limits for other physical illnesses.
             The Mental Health Parity Act, effective January 1, 1998, requires that any group health plan that: (1) is maintained by an employer who employs 51 employers or more; and (2) offers a mental health benefit, must provide for an equal or greater mental health benefit than that allowed for medical or surgical services. This law does not apply to substance abuse treatment, nor does it affect...