Mental Health and Substance Abuse Costs Dropped 39 Percent FollowingParity Coverage

May 27, 2002

Mental Health and Substance Abuse Costs Dropped 39 Percent Following Parity Coverage

Mental Health and substance abuse costs for one large employer dropped 39 percent over four years under a mental health parity plan studied in the May/June issue of Health Affairs. The authors say using a managed care carve-out arrangement to provide equal coverage for mental health services did not raise costs for the employer. The researchers with the Agency for Healthcare Research and Quality found that although the number of people treated for mental health problems increased nearly 50 percent . . .