The Wall Street Journal today offers a look at the cost of mental health parity and the role that employee assistance plans (EAPs) may play. These plans are in some cases being optimized to work alongside mental healthcare, with particular focus on the transition from one to the other. Note this excerpt from a recent case study:
…the employer also determined that many employees were not taking full advantage of the resources available to them, due to a lack of integration between the two vendors. In this case, the EAP was responsible for the first seven days of mental health care, with the health plan covering services after that. The employer had the two vendors develop detailed transition plans to ensure that employees would continue to have assistance when the EAP’s services ceased and the health plan’s responsibility began.
Employers are trying to mimimize any cost impact from parity. Here is an excerpt from the WSJ article:
It’s unclear just how costly mental-health parity will be for companies to provide. A 2007 actuarial analysis conducted by consulting firm Milliman Inc. suggested that costs under parity for employers may increase 0.6%, or $2.40 a month for each employee in 2008 dollars. A 2007 Congressional Budget Office study estimated that premiums would rise by an average of 0.4%.
For more insight on this topic, read the latest white paper by Steve Melek about preparing for mental health parity. Here is Melek’s Congressional testimony, which includes the 2007 results.