2/4/2009 1:59:19 AM
HOFSTRA LABOR & EMPLOYMENT LAW JOURNAL
Fiscal Impact of Implementing Timothy’s Law
When Timothy’s Law was originally proposed, not only was the legislation good for public
proponents argued policy, because it
O’Clair and his family, but that it was fiscally sound as well.29
analyses demonstrate indeed affordable. 30
insurance May of
coverage for mental illnesses is 2002, PriceWaterhouseCoopers
impact for employer plan healthcare costs would rise about 0.8 percent, or a meager $1.26 per member per month.32 In addition to including conservative assumptions that tended to overstate the expected costs of implementing a mental parity plan, the actuarial analysis did not assume any medical offset, disability savings, productivity savings, or any
savings from public sector mental health programs, which would further diminished the actual costs per member per month. implementation of similar mental health parity laws in other states, 33
have After those
percent increase in Rhode Island, no 0.2 percent decrease in Maryland. 34
In contrast to the small costs of providing mental health parity, the costs from lost productivity and increased absenteeism, not including unemployment compensation or welfare, was estimated at more than $44
Companies Ordered to Tell Customers About ‘Timothy’s Law’, BUS. REV. (Albany), Feb. 5, 2007, available at 2007 WLNR 2206162 (summarizing an emergency directive ordered by Eric Dinallo, Acting Superintendent of the New York Insurance Department, requiring insurers to alert their customers of the enactment of Timothy’s Law and the changes it makes on their insurance agreements); State Orders Publicity for “Timothy's Law”, BUS. FIRST (Buffalo), Feb. 5, 2007, available at 2007 WLNR 2206672 (same).
See Timothy’s Law, supra note 1.
Id. (citing RONALD E. BACHMAN, AN ACTUARIAL ANALYSIS OF COMPREHENSIVE
MENTAL HEALTH AND SUBSTANCE ABUSE BENEFITS FOR THE STATE OF NEW YORK 5 (2002)
[hereinafter AN ACTUARIAL http://www.timothyslaw.org/actuarialsumm.pdf).
AN ACTUARIAL ANALYSIS, supra note 30, at 5.
Id. at 5.
Id. at 4.
Press Release, Nat’l Alliance on Mental Illness of N.Y. City Metro, Inc., Equal Mental
Health Benefits – Good for Families AND Good for Business (May 13, 2003), [hereinafter Equal Mental Health Benefits] available at www.naminycmetro.org/equalbenefits_factsheets.html.htm (emphasis added).
35. Timothy’s Law, supra note 1; Equal Mental Health Benefits, supra note 34.