Health affairs
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The 1996 Mental Health Parity Act requiring equal annual and lifetime dollar limits for mental health benefits is to sunset 30 September 2001. This paper reviews the impact and limitations of both this law and existing state provisions and describes recent research on the actual and projected costs associated with such laws. We contend that full parity provided within the context of managed care not only is possible, but represents a "sequential" rather than a final step toward the broader goal of achieving equity in the treatment of persons with mental and addictive disorders.
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Many of the 250 physician organizations that provide care to California's sixteen million health maintenance organization enrollees are in a state of crisis, squeezed between constrained revenues, rising practice costs, and consumer sentiment that favors unconstrained choice over integrated delivery. Medical groups and independent practice associations are retrenching to their core geographic areas, reducing capitation for drug benefits and hospital services, and abandoning dreams of displacing health plans. Consolidation is accelerating in some areas, as medical groups join with hospitals to extract higher payment rates from insurers and employers. The conjunction of consumerism and premium inflation creates new opportunities for organizations that truly can manage health care, but the challenges roiling California's medical groups may preclude meaningful efforts to seize the initiative.