Congress takes first step toward equal coverage of mental, physical disability coverage

A bill introduced in Congress last month would end the disparity in how long-term disability insurance carriers treat physical conditions and mental conditions or substance abuse disorders, the Milwaukee Journal Sentinel reported June 26. Today, jobs with long-term disability benefits typically provide insurance coverage for physical ailments until retirement age. However, no matter how severe and persistent the mental illness is, how debilitating the post-traumatic stress disorder, or how difficult the addiction recovery, virtually every U.S. insurer cuts the coverage after 24 months. The Workers' Disability Benefits Parity Act, introduced by U.S. Reps. Mark DeSaulnier, a California Democrat, and Bobby Scott, a Virginia Democrat, would end that practice, which is known in some company plans as a “mental/nervous limitation.” The legislation comes a year and a half after a landmark report from the ERISA Advisory Council on Employee Welfare and Pension Benefit Plans concluded that duration limits for mental health and substance use disorders are discriminatory. The ERISA (Employee Retirement Income Security Act) Council provides advice on policies and regulations affecting employee benefit plans governed by the federal tax and labor law that, 51 years ago, set standards for employee benefits plans.