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Parity for Mental Health Treatment in California: AB 1887 Needs Governor’s Signature

By Jim Beall, Jr.
Member
California State Assembly

There are 18 million Californians who have health insurance can count on medical help when they have a physical illness or injury. But if they suffer from a severe mental health or substance abuse disorder, many of them will learn their treatments will only go as far as their pocketbook will take them.

Insurance plans have drawn a line when it comes to treating mental disorders. Many do not provide coverage. Others limit what types of disorders merit treatment and cap lifetime mental health treatments at $50,000 compared with $1 million for other services. This disparity – some would call it discrimination – in health coverage costs the U.S. $150 billion in treatment, social services, and lost productivity annually, according to the National Institute of Mental Health.
The most tragic statistic lies in wasted lives – people overwhelmed by severe mental disorders. Of the more than 30,000 Americans who commit suicide annually, 80 to 90 percent of them suffered from a mental disorder that could have been treated through therapy or medication, the Centers for Disease Control and Prevention reports.

In California, we can reverse this trend. Legislation is on Gov. Schwarzenegger’s desk now, Assembly Bill 1887, that requires insurers to provide coverage and treatment for mental disorders and substance abuse equivalent to the coverage provided for medical illnesses.
This bill is also an opportunity to begin reining in rising health costs.

All of us who have medical coverage are subsidizing the unpaid medical bills of the uninsured. Hospitals, clinics, doctors, and health professionals are forced pass on a portion of those unpaid bills onto us so they can stay in business to help treat sick people tomorrow. A New American Foundation report last year described these costs as a “hidden tax’’ that results in the average family paying $1,186 more a year for health care.

A California Health Benefits Review Project analysis concluded adding this new facet would increase annual premiums by a scant $3 to $6. Kaiser Permanente conducted its own study and concluded the benefits of early intervention and treatment were so significant that it now covers mental and substance abuse disorders the same as any other chronic health condition.

The bill has another benefit: It can help reduce the needless and costly warehousing of addicts and the mentally ill in our jails and prisons. Our prison system’s woeful health care for inmates has already resulted in California losing control of it to a federally appointed receiver who is demanding $8 billion to build long-term care facilities, including new mental health units.

A report by the U.S. Department of Justice three years ago found 56 percent of state prisoners and 64 percent of jail inmates had mental health problems, a findings that seemingly underscores our inability to provide adequate treatment. These national findings ring true here in the Bay Area.

In a July letter to the governor, Santa Clara County Sheriff Laurie Smith said, “An alarming number of mentally ill persons end up incarcerated because they lack access to appropriate care. Inadequate access to mental health services forces law enforcement officers to serve as mental health providers of last resort, and this misuse of the corrections system costs state taxpayers roughly $1.8 billion per year.

“Assembly Bill 1887, if passed, will enable many people to straighten out their lives and avoid crime by offering affordable treatment through their health coverage. And the most effective method of treatment is in community settings, not in prison or jails.’’

Today, we have a historic opportunity to undercut the toll exacted by mental illness, as well as substance abuse, on our society. We can accomplish this through prevention by simply ensuring that Californians who have health insurance can receive mental health treatment under their existing coverage.

Making AB 1887 our law is not only a morally correct and humane choice but one that is fiscally responsible, too. It can and will save people’s lives, rescue their careers, and keep families together. All it needs is the governor’s signature.

Assembly Member Jim Beall, Jr. (D-San Jose), represents the 24th Assembly District, which includes the cities of Campbell, Saratoga, and parts of Santa Clara, San Jose and Los Gatos. He is the Chair of the Assembly Human Services Committee and is dedicated to improving conditions for children, youth, families, and seniors.

Posted on September 07, 2008

Comments

Mental health or physical health, health is health. I work in a field that deals with parolees, substance abuse and mental health treatment. It is very difficult for some of these people to receive services, let alone very expensive medications. If they are already receiving mental health services through parole then it is not a problem. If they have never being diaagnosed by CDCR as having a problem or previous case, it is not going to happen. They are turned away from County Behavioral Health Facilities because"they are on parole", and should be able to get help there. It is very frustrating and if mental health issues go untreated these people end up right back in prison. It seems to me it would be more cost efficent to allow them to get treated and medication than to have them return to prison. On the other end I also feel the co-pays of every visit to the Dr. . Now we have 2,000.00 deductible on our HMO plan and 100.00 on perscriptions, just to be able to keep our premium as low as possible. There are minimul provisions if we were to need mental health treatment, but anything long term we would be in trouble. If the budget does not get signed soon I won't have to worry about insurance because I'll be out of a job and have to find another one, which will leave my family and myself without coverage until a probation period is over. Oh, I could pay for cobra but this is not an option because it is far to costly. Yes, the system is broke, I only hope it is fixable!!

Posted by: James at September 7, 2008 09:24 AM

This will make our rates go up. At a time when so may can not afford health insurance. The insurance company does not care they just pass the higher rates on to you and me. No thanks,

Posted by: Jeff at September 7, 2008 08:07 PM

Replacing mental health care with prison time ruins salvageable lives and families and cost us too much money.

You can easily ask Governor Schwarzenegger to support AB 1887 by going to www.govmail.ca.gov . You can also search for your legislators and post a quick note to them too.

Posted by: Barbara at September 7, 2008 08:54 PM

The new asylum are the department of Corruptions, housing the mentally ill in prison is Toxic and worsen the suffer. The California correctional officers know nothing in dealing with the mentally ill. All the Department of corrections is punishment, punitive action! This is a violation of ones rights to medical treatment, and violation of ones Constitutional Rights! The mentally ill have no where to go, they are victims of a society that has failed them the rights as humans! We all need to take a stand these humans that can not defend them selves from the cruel and unusual punitive legal and prison system industry

Posted by: Gina at September 8, 2008 07:09 PM

The prison system is overwealmed with persons who, in another time would be receiving TREATMENT at state mental hospitals. Gov. Reagan gutted the state's mental health system back in the 1970's and the state's prison system was forced to absorb those in need of treatment. The prison system is grossly incapable of dealing with these types of individuals... just ask the federal receiver who now has control of the system. These people are citizens who NEED TREATMENT... not warehoused in facilities where they can stand in line eyery day to "get their meds" The cost if keeping them locked up is what, $40,000+ a year. Providing sound mental health coverage could not possibly cost us more.

Posted by: Dave at September 8, 2008 08:45 PM

Assembly Bill 1887,benefits us all~the mentally ill do not belong in prisons~investing in building,healing mental health clinics,with real doctors & nurses,not guards~~this is not their job~~no wonder they want more pay raises~~they have to deal with the mentally ill~~so they want doctors & nurse wages~~Great Intelligent Article,makes so much sense~Thank You Assembly Member Jim Beall,Jr,perhaps CDC tiny "r" will read this,in expanding their knowledge,in this life & death situation~
Californians who have health insurance can receive mental health treatment under their existing coverage,this is wonderful news to know,for the rest of us~~

Posted by: weRalldoingtime at September 9, 2008 01:20 AM

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