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Recovery in the News
Senate bill undermines Vt. health coverage
Daniel Barlow
Vermont Press Bureau
May 19, 2007
MONTPELIER When U.S. Sen. Ted Kennedy unveiled his new mental health parity bill in Washington, D.C. last month, he called it a breakthrough that will provide "new hope to millions of our fellow citizens."
But if you ask mental health advocates in Vermont a state that became a leader in mental health care following passage of 1997 legislation Kennedy's proposal will break all the hard work that has been accomplished here.
"Calling this a parity bill does not do the issue justice," said Ken Libertoff, the executive director of the Vermont Association for Mental Health and the author of the state's current law. "This bill runs the threat of an empty promise and even worse, it will undermine all the good work done in a number of states."
Vermont's 1997 parity law requires that insurance providers in the state provide equal coverage for mental health and substance abuse services just as they do for physical health services.
Previously, companies operating in the state only provided coverage for certain mental health issues or offered limited compensation, including Blue Cross/Blue Shield, then the state's largest insurance underwriter, which had a $10,000 lifetime cap on reimbursements for mental health care.
But Kennedy's proposal would preempt any parity laws that state's already have, meaning a setback for Vermonters who are seeing the benefit of the 1997 law, according to advocates.
Kennedy's Washington office supplied information and a press release on his proposal Friday, but did not return a call for comment. In introducing the bill in February, Kennedy pointed out that only one-third of Americans with mental illnesses receive treatment.
"The bill we introduce today will begin to right these wrongs," Kennedy said.
Libertoff isn't the only one concerned with Kennedy's bill. State officials are watching the issue closely as well.
Michael Hartman, the deputy commissioner of the Vermont Department of Health, said he is worried that the U.S. Senate proposal would wipe out what he called a "landmark" state law. He said it is unusual to have federal health legislation preempt stronger state laws.
Among his concerns with the proposal is that it makes very little mention of substance abuse services, which is a major part of Vermont's law.
"This bill is strongly supported by the large insurance companies," Hartman said of Kennedy's proposal. "Passing this could narrow the options Vermonters have and result in more out-of-pocket costs."
Vermont's delegation in Washington, D.C. is also troubled by the proposal. U.S. Sen. Patrick Leahy has not signed onto Kennedy's bill as a co-sponsor and will push for an amendment that would keep Vermont and other state's tougher parity laws intact, according to spokesman David Carle.
"As a rule, the senator doesn't usually like legislation that would preempt strong state laws such as the one in Vermont," he said.
U.S. Sen. Bernard Sanders said Thursday that he also does not support the bill and is working with Sen. Chris Dodd, D-Conn., who hails from a state with a parity law similar in strength to Vermont's law, to find alternative language that would stop the federal legislation from preempting the states.
"Vermont has been a leader in the country on this issue and I will oppose any attempt to lower those standards," Sanders said.
Many mental health advocates far prefer a House bill introduced by Rep. Patrick Kennedy, D-R.I., Ted Kennedy's son, who has gone public with his own battles with depression and substance abuse. That bill does not not preempt state laws.
"Ending insurance discrimination is about whether our nation lives up to the ideals of the Declaration of Independence and the Constitution, promising every person the chance to reach his or her God-given potential," the younger Kennedy wrote in a recent editorial.
Neither bill mandates that insurance companies offer coverage for mental health services on equal par with physical health coverage, something that the Vermont law now in place does require, only that if they do now offer such services that it would then need to be equal, according to Libertoff.
Still, the U.S. House proposal wouldn't preempt state law. And it could mean a leap forward in regulating coverage in other states that either have very weak laws or none at all, he said.
U.S. Rep. Peter Welch also came out in opposition to the Senate bill Friday.
"Vermont has in many ways led the nation in equitable treatment for those suffering from mental health illnesses," he said in a statement. "Congress would do well to follow our example and not interfere with the leadership of states like Vermont."
© 2007 Vermont Press Bureau, Herald Association