August 26, 2003

Effects of the Vermont Mental Health and Substance Abuse Parity Law

Vermont implemented the Nation's most comprehensive parity law in 1998, extending equality of health insurance coverage to both mental health and substance abuse services. This evaluation, by Margo Rosenbach, Tim Lake, Cheryl Young, Wendy Conroy, Brian Quinn, Julie Ingels, Brenda Cox, Anne Peterson, and Lindsay Crozier, determines how implementation of parity in Vermont affected major stakeholders: employers, health plans, providers, and consumers. The evaluation included an implementation case study, an employer survey, and an analysis of health plan claims data. This study reflects experiences during the first 2 to 3 years of parity in Vermont. The study shows that parity for mental health and substance abuse benefits was achieved in Vermont. Increased use of managed care helped make parity affordable but may have reduced access and utilization for some services and beneficiaries. Vermont stakeholders recommended that more attention be paid to education and other proactive efforts to better prepare for a change of this magnitude.