A Model Mental Health Benefit in Private Health Insurance

Abstract

Prologue:Mental health benefits in public and private insurance range from no coverage whatsoever to a wide range of defined benefits. In addition, what insurance is available for mental health care often contains incentives for the wrong kinds of treatment or fails to provide adequate protection. In this essay the authors propose a “model” mental health benefit for the private insurance market that addresses these concerns. This model was developed in response to a congressional request to the National Institute of Mental Health (NIMH). Early presentations of the model to NIMH, insurers, and patient groups have sparked much controversy. One goal of the model benefit is to draw national attention to the need to include mental health care in serious proposals for national health reform. A bill introduced 12 May 1992 by Sen. Pete V. Domenici (R-NM) and Sen. John C. Danforth (R-MO) describes a model mental health plan to be included in any national health care reform. While the plan in this bill is not the model mental health benefit described here, “it adopts a set of principles that are consistent with what we've set out” said author Richard Frank. An economist, Frank is a professor in the Department of Health Policy and Management, The Johns Hopkins School of Hygiene and Public Health; and deputy director of the Johns Hopkins University (JHU)/University of Maryland (UM) Center on Organization and Financing of Care for the Severely Mentally Ill. Howard Goldman holds degrees in medicine and public health and a doctorate in social welfare research. He is a professor of psychiatry and director of mental health policy studies at the University of Maryland School of Medicine; and associate director of the JHU/UM center. Thomas McGuire is a professor in the Department of Economics at Boston University. He serves as a consultant to the JHU/UM center.