National Mental Health Parity Act of 1997

TABLE OF CONTENTS:

Title I: Parity for Treatment of Mental Illness

Title II: Medicare Mental Health Improvement

National Mental Health Parity Act of 1997 - Title I: Parity for Treatment of Mental Illness - Amends the Internal Revenue Code to impose on the applicable issuer a tax equal to 25 percent of a health plan's premiums received during the calendar year if the plan imposes limitations or financial requirements on the coverage of benefits provided with respect to any of specified psychiatric conditions (described in the American Psychiatric Association's Diagnostic and Statistical Manual), while similar limitations or requirements are not imposed on coverage of benefits with respect to other conditions. Provides similar obligations and sanctions with respect to group health plan parity for treatment of mental illness.

Title II: Medicare Mental Health Improvement - Amends title XVIII (Medicare) of the Social Security Act to restructure the mental health benefit, including: (1) coverage under Medicare part A (Hospital Insurance) of inpatient hospital services furnished primarily for the diagnosis or treatment of mental illness or substance abuse for up to 60 days during a year, as well as coverage of intensive residential services furnished to an individual for up to 120 days during a year; (2) lower co-payments for certain outpatient mental health and substance abuse services; (3) waiver of co-payment for case management services furnished to a seriously mentally ill adult, a seriously emotionally disturbed child, or an adult or child with serious substance abuse disorder; (4) case management services for an unlimited duration for such individuals; (5) provision of items and services furnished under Medicare part B (Supplementary Medical Insurance) for the treatment of mental illness or emotional disturbances according to standards established by the Secretary of Health and Human Services; (6) a new category of intensive community-based services covering, among other services, current partial hospitalization services as well as psychiatric rehabilitation services, in-home services, and day treatment for substance abuse for individuals of any age and for other mental health services for individuals under age 19; (7) mandatory authorization under State law or certification by an appropriate accreditation entity (approved by the State in consultation with the Secretary) for intensive community-based services programs (whether facility-based or freestanding); and (8) supervision of individualized treatment programs by non-physician mental health professionals to the extent permitted under State law.