News Release

For Immediate Release:
October 12, 2007
Contact: Richard Woonacott
Communications Director
(916) 319-2687

Mental Health Parity and Substance Abuse Treatment Bill Vetoed by Governor

Assembly Member Jim Beall, Jr.'s (D - San Jose) Bill (AB) 423 was vetoed by the Governor last night.

This bill would have ended the discrimination against patients with mental disorders and substance abuse issues by requiring treatment and coverage of those illnesses that is equitable to coverage provided for other medical illnesses. 

“Many health plans do not provide coverage for mental disorders and those plans that do offer coverage impose much stricter limits on mental health care than on other medical care.  Mental health parity and treatment for substance abuse is long overdue in California.  It costs insurers and consumers very little and it saves lives,” explained Beall.    

The Governor’s veto message read in part, “I encourage the author to work with me to enact comprehensive health care reform that will provide all California access to health coverage, strengthen prevent efforts, increase access to mental health and substance abuse services, and promote affordability”.

“Although I am very disappointed in the veto, I am encouraged that the Governor seems to agree in principle with the tenants of AB 423 and wants to work with me on the issue.  I look forward to engaging him further in this conversation,” stated Jim Beall, Jr.
 
Children whose families receive appropriate drug and alcohol treatment are less likely to remain in foster care.  Families receiving addiction treatment spent $363 less a month on regular medical care than untreated families.

After completing treatment, there is a 19% increase in employment and an 11% decrease in the number of clients who receive welfare.  And re-arrest rates dropped from 75% to 27% when inmates received addiction treatment.

Adolescent re-arrest rates decrease from 64.5% to 35.5% after one year of residential treatment.
Annual employer costs for mental illness are an estimated $23 billion in lost work days and the cost to the United States is more than $150 billion in treatment, social services and lost productivity. 

“Clearly, the time has come for mental health parity in California.  We must continue our efforts to bring parity to all Californians,” exclaimed Beall.

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