Pallone Speaks on Need to Address Discriminatory Mental Health Insurance Practices

Washington, D.C. --- U.S. Rep. Frank Pallone, Jr., (D-NJ), Chairman of the House Energy & Commerce Subcommittee on Health, made the following statement today at a Congressional forum on mental health and addiction insurance equity that he hosted along with U.S. Rep. Patrick Kennedy (D-RI) in Trenton, NJ.

"Congressman Kennedy and I are here as federal legislators to listen and learn about the problems confronting New Jersey residents when they seek mental health and addiction treatment services. We also want to hear how our state legislators and officials are proposing to address the question on the state level and resolve some of the discriminatory insurance practices that persist in spite of efforts in the past to correct the situation.

"My colleague, Congressmen Patrick Kennedy of Rhode Island, along with Congressman Jim Ramstad of Minnesota, have been the most vocal proponents in the U.S. House of Representatives fighting for equality in the way insurance plans cover mental health and addiction services, compared to other medical treatments. Together the two of them have criss-crossed the country to bring national attention to the cause of parity and to develop support for their legislation. Although Jim, a Republican, could not be here today, his hard work and strong participation in this national campaign has demonstrated over and over that this is NOT a partisan issue. Over 230 Members of Congress of both parties have cosponsored their legislation.

"I also want to thank State Sen. Joe Vitale and Assemblyman Bob Gordon for their legislation requiring parity in health insurance plans, including the State Health Benefits Plan.

"New Jersey's current parity law does not include treatment for illnesses such as eating disorders and post traumatic stress disorder, conditions which are serious in themselves, but can lead to even more devastating consequences. And we have to change the "revolving door" scenario in which patients may get treatment for substance abuse, but not for long enough to cure the problem. So, there certainly is room for improvement. Finally, it is also important that we try to ensure that States like New Jersey, which may end up with stronger parity provisions, are not pre-empted by federal laws that may result from the need to compromise in order to gain passage.

"With the new Democratic Congress, and from my vantage point as chairman of the Energy and Commerce Committee's Health Subcommittee, I believe we are at a critical point of both opportunity and challenge.

The OPPORTUNITY is to have the chance to correct some of the glaring inadequacies in our health care system. Most critical is the need to cover the uninsured and make sure that urgent needs, like mental health and substance abuse are covered equitably. The CHALLENGE is to find the money to fix the health care dilemma we face. I must say, I am encouraged by the studies which show that parity in mental health and substance abuse does not add significantly to the overall cost of the plans, but we have some convincing to do on that point.

"When I leave here this morning, I will be heading back to Washington, D.C., to address the National Governor's Conference this afternoon. I will take with me what I have learned today and the hope that all of us, working together on all levels, can get us back on the track toward real solutions."