[Congressional Record Volume 142, Number 135 (Thursday, September 26, 1996)]
[Senate]
[Pages S11365-S11366]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 INSURANCE COVERAGE FOR DRUG TREATMENT

  Mr. KENNEDY. Mr. President, Congress has passed and President Clinton 
will soon sign historic legislation to improve health insurance 
coverage for individuals with mental illness. This initiative 
represents a major step forward to eliminate unjustified discrimination 
between mental health and physical health in insurance coverage.
  I especially commend my colleagues, Senator Domenici and Senator 
Wellstone, on their legislative success. Through tireless advocacy and 
effective leadership, they have convinced the Senate of the wisdom of 
ending insurance discrimination against the mentally ill.
  Enactment of this measure is gratifying, but it is only a first step. 
Our work in this area is far from complete. When the Labor Committee 
reported a health insurance bill in 1994, our provision on mental 
health parity included coverage for the related disorder of substance 
abuse. Regrettably, that aspect of the earlier proposal was dropped in 
the recent compromise.
  Every year, despite a desperate desire to overcome their addiction, a 
large number of Americans forgo needed treatment for substance abuse 
because their health insurance does not cover the cost of this 
treatment. Despite faithful and regular payment of their premiums, 
these citizens are denied coverage for this debilitating and chronic 
illness.
  Ironically, such coverage was dropped, even though the war on drugs 
is once again the subject of intense media attention in this election 
year. Government surveys report that teenage drug use is on the rise. 
While resources for law enforcement efforts to reduce the supply of 
drugs have grown dramatically in recent years, resources for treatment 
have decreased. In 1996, Congress slashed substance abuse treatment and 
prevention programs by 60 percent, and attempted to cut the Safe and 
Drug Free Schools Program in half. The House has proposed only minimal 
increases for fiscal year 1997 over these drastically reduced levels.
  Publicly supported treatment will never meet the needs of all those 
who would benefit from treatment. The private sector must play a 
significant role through insurance coverage for such treatment.
  More than 70 percent of drug users are employed. Many of these drug 
users have private health insurance. Yet, treatment for their addiction 
is rarely covered. Even when private plans cover treatment for 
substance abuse, benefits are limited. Since drug use is a chronic, 
recurrent condition, like diabetes or hypertension, addicts quickly 
exceed their coverage limit. Due to the nature of substance abuse, 
those who do not obtain treatment often lose their jobs. They are then 
forced into the already over-burdened public treatment system.
  Extending insurance coverage to those seeking to free themselves from 
substance abuse would improve productivity and decrease drug-related 
crime. That would constitute real progress in the war on drugs.
  Parity for treatment of substance abuse would also be cost effective. 
A 1994 study by the State of California shows that for every $1 spent 
on treatment, $7 in costs are saved. Treatment reduces employer health 
care costs, because treated employees and members of their families use 
fewer health services.
  Parity would also drive down non-health care costs to the employer by 
reducing absenteeism, disability payments and disciplinary problems.
  These benefits come at a bargain price. According to the actuarial 
firm of Milliman and Robertson, substance abuse parity will increase 
overall health insurance premiums by only one-half of 1 percent.
  Again, I congratulate my colleagues for passage of the mental health 
parity compromise. I look forward to working with them to build on this 
achievement. I hope that one of our highest priorities in the next 
Congress will be to take this needed step to fight drug abuse.
  Mr. COVERDELL. Madam President, I ask unanimous consent that the 
period for morning business be extended for up to 4 minutes.

[[Page S11366]]

  The PRESIDING OFFICER (Ms. Snowe). Is there objection? Without 
objection, it is so ordered.

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