Business Services Industry

Employers Balk at Mental Health Provision of Senate Insurance Reform Bill.(Originated from The Boston Globe)

Knight Ridder/Tribune Business News, April, 1996 by Stein, Charles

Apr. 25--It sounds innocent enough: Let's require health insurers to treat mental illness the same way they treat physical illness.

But a provision to do just that has triggered heavy business opposition to a health insurance reform bill that looked to be on its way to passage in Congress. Business says the measure would drive up the price of health insurance and force some employers to dump their health coverage.

"It's obvious some people would lose their coverage entirely," said Richard Smith, vice president of the Association of Private Pension and Welfare Plans, a trade group for large American companies.

The mental health amendment was attached at the last minute to a bill passed by the U.S. Senate Tuesday that would make it easier for...

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