Medicare Mental Health Coinsurance Parity

 

In January 2010 we reported on Medicare Improvement Act (MIPPA) changes that went into effect on January 1, 2010. These included changes in the way assets are counted for the Medicare Savings Programs (MSPs) and Medicare Part D (asset limit increases for the MSPs and life insurance and in-kind contributions no longer being counted as assets for Part D Extra Help).

Another component of the Medicare Improvement Act that will be phased in over the next several years is Mental Health Coinsurance Parity. This Coinsurance Parity will be phased in from 2010 to 2014. Previously, Medicare beneficiaries paid coinsurance of 50 percent for outpatient mental health services. This is substantially more than the 20 percent they pay for most other outpatient medical care. MIPPA will gradually correct this inequity by phasing coinsurance rates for mental health services down to 20 percent by 2014.

-Adapted from “ Medicare Improvements Act”, MGH Community News, January 2009, at http://healthcare.partners.org/ss/ssframebottom/staffresources/news/2008/12-08_Medicare_improvements_act.htm, which was adapted from: “ Congress Delivers Help to People with Medicare: An Overview of the Medicare Improvements for Patients and Providers Act of 2008 ” Issue Brief, Families USA October 2008 , at http://www.familiesusa.org/assets/pdfs/medicare-improvements-act-2008.pdf, retrieved 12/8/08.

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