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April 4, 2001
law

Nonprofits Advocate for Parity in Health Plans

According to Stacia Murphy, the president of the National Council on Alcoholism and Drug Dependence (NCADD), "more than 23 million people suffer from addiction. Many studies show that substance abuse treatment reduces health care costs by 50% or more. I am convinced that full parity in health plans would quickly begin to reduce the huge burden untreated addiction inflicts on our hospitals, judicial system and communities."

Together, NCADD and Partnership for Recovery are promoting legislation introduced by Senator Paul Wellstone, (D-MN), Congressman Jim Ramstad, (R-MN) who were joined by Minority Leader Tom Daschle (D-SD) and a bipartisan group of members in both chambers. Fairness in Treatment: The Drug and Alcohol Addiction Recovery Act of 2001 is written to cover addiction treatment in the same manor as other medical and surgical conditions currently covered under private health plans. Current health plans often impose caps that are unequal to other diseases, require higher co-pays and restrict the number of covered visits.

According to the Physician Leadership on National Drug Policy at the Center for Alcohol and Addiction Studies at Brown University, untreated addiction costs six times more than America's number one killer, heart disease ($133.2 billion). They also cite that fair access to treatment for families afflicted by addictive disease will reduce the nations current $400 billion tab for incarceration, alcohol-related accidents on U.S. highways and workplaces, as well as escalating health care costs related to untreated alcohol and drug addictions. Actuarial studies conducted by Milliman and Robertson estimate that full parity for substance abuse treatment increases insurance premiums by less than one percent or less than $1 per family per month.

The Fairness in Treatment: The Drug and Alcohol Addiction Recover Act of 2001 provides non-discriminatory coverage of drug and alcohol addiction treatment services by private health insurers. The bill does not require that drug and alcohol addiction treatment benefits be part of a health benefits package, but rather prohibits discrimination by health plans who offer such benefits from placing restrictions on treatment that are different from other medical and surgical services.



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