Does Mental Health Parity Make Sense for Wisconsin? An Evaluation of the Effects of Mental Health Parity in the Commercial Insurance Market

Abstract

Insurers in Wisconsin are not required to cover mental health services at the same level as physical health services. This discrepancy in coverage may prevent people with a mental illness from accessing the treatment necessary to function at their highest potential. This report explores the impacts of passing a mental health parity mandate in Wisconsin, which would prohibit separate cost-sharing requirements and benefit limits for insurance coverage of mental and physical health care within the state?s commercial insurance market. The analysis applies existing cost estimates from prior research of parity to the Wisconsin insurance market, identifies the benefits of parity for state residents, employers, and the government, and explores the political feasibility of passing the mandate.