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September 7, 2007
 CBO Cost Estimate of H.R. 1424 Paul Wellstone Mental Health and Addiction
Equity Act of 2007
H.R. 1424 would prohibit group health plans and group health insurance
issuers that provide both medical and surgical benefits and mental health
benefits from imposing treatment limitations or financial requirements
for coverage of mental health benefits (including benefits for substance
abuse treatment) that are different from those used for medical and
surgical benefits.
The bill's requirements for issuers of group health insurance would apply
to managed care plans in the Medicaid program.
The Congressional Budget Office (CBO) estimates that
enacting H.R. 1424 would increase federal direct spending for Medicaid by
$310 million over the 2008- 2012 period and by $820 million over the
2008-2017 period. In addition, assuming appropriation of the necessary
amounts, CBO estimates that implementing H.R. 1424 would have
discretionary costs of $20 million in 2008, $143 million over the
2008-2012 period, and $322 million over the 2008-2017 period.
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