[Congressional Record Volume 143, Number 115 (Thursday, September 4, 1997)]
[Extensions of Remarks]
[Page E1657]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 PUTTING CHEMICAL DEPENDENCY ON PAR WITH INSURANCE COVERAGE FOR OTHER 
                                DISEASES

                                 ______
                                 

                            HON. JIM RAMSTAD

                              of minnesota

                    in the house of representatives

                      Thursday, September 4, 1997

  Mr. RAMSTAD. Mr. Speaker, I rise today to introduce the Substance 
Abuse Treatment Parity Act, a bill to give alcoholics and drug addicts 
more access to treatment by prohibiting health insurers from placing 
discriminatory caps, financial requirements, or other restrictions on 
treatment that are different from other medical and surgical services.
  As a grateful recovering alcoholic, I've seen first hand the value of 
treatment for people who are chemically dependent. As someone who stays 
close to recovering people and treatment professionals in Minnesota, 
I've been alarmed by the dwindling access to treatment for people who 
need help. That's why I believe it is time to put chemical dependency 
on par with insurance coverage for other diseases.
  Alcoholism and drug addiction are painful, private struggles with 
staggering public costs. In fact, the direct and indirect costs of 
alcoholism alone in this country exceed $90 billion each year. Assuring 
access to treatment will not only combat this insidious disease--it 
will save health care dollars in the long run. Treatment helps people 
stay healthier longer and saves the health care system money.
  The empirical evidence supports what I already know as a recovering 
alcoholic--providing treatment is good preventive medicine.
  A Minnesota study to extensively evaluate its treatment programs' 
effectiveness found that Minnesota saves $22 million in annual health 
care costs because of treatment.
  A California study reported a 17 percent improvement in health 
conditions after treatment--and dramatic decreases in hospitalizations.
  A Rutgers University study found that untreated alcoholics incur 
general health care costs that are 100 percent higher. It also found 
that after treatment, days lost to illness, sickness claims, and 
hospitalization dropped by half.
  A report printed in the 1992 Journal of Mental Health Administration 
sampled 63,873 hospitalized alcoholics and found medical complications 
are far more severe among those not treated for alcoholism.
  This legislation will help eliminate barriers to treatment--without 
significantly increasing health care premiums. We have the empirical 
evidence to support this assertion: A Milliman and Robertson study 
released today found full and complete substance abuse treatment parity 
would increase per capita health insurance premiums by only one half of 
one percent--without even considering the obvious savings that will 
result from treatment.
  And just like the mental health parity provision of last session, 
this legislation waives the requirements if premiums increase by more 
than 1 percent. It also exempts small businesses with fewer than 50 
employees.
  Mr. Speaker, removing barriers to treatment is a huge step in the 
right direction. Parity for substance abuse treatment is the right 
thing to do. It's also the cost-effective thing to do. I urge my 
colleagues in the House to support this important legislation and look 
forward to working with all Members in both the House and Senate in 
passing this bill.

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