NU Online News Service, May 5, 4:08 p.m.EDT

New York Gov. David A. Paterson said today he will seeklegislation making permanent the law setting requirements for themental health care that must be provided by group or school healthinsurers.

The measure would make permanent "Timothy's Law," which tookeffect January 1, 2007 and was named after a youth who was unableto obtain mental treatment and committed suicide.

Under the statute insurers issuing group or school blankethealth insurance policies or contracts in New York must provide aminimum of 30 inpatient days and 20 outpatient visits (30/20benefit) for the treatment of mental health conditions.

Timothy's Law also requires large group health insurancepolicies (with more than 50 employees or members) to providecoverage for adults and children diagnosed with biologically basedmental illnesses and children diagnosed with serious emotionaldisturbances at the same level of coverage as is provided for otherhealth conditions.

Timothy's Law is currently set to expire on Dec. 31.

The law will provide "New Yorkers with the mental healthcoverage they need to remain healthy and be productive residents ofour state," said Gov. Paterson.

The Superintendent of Insurance, in consultation with the Officeof Mental Health (OMH), as required by the law did an impact studythat was given to Gov. Paterson today.

Among the report's findings was that access to 30/20 benefitmental health coverage increased from 42 percent to 100 percent inthe combined large and small group markets. Access to coverage forbiologically based mental illnesses and serious emotionaldisturbances in children beyond the 30/20 benefit increased from9.6 percent to 43.7 percent in the small group market, and from 11percent to 100 percent in the large group market.

The 30/20 benefit was found to have increased monthly costs byapproximately $1.04 per member per month in the small group market,amounting to 1/2 of 1 percent of total monthly cost.

Timothy's Law is strengthened by a recently enacted federalmental health parity law. Enacted in October 2008, the PaulWellstone and Pete Domenici Mental Health Parity and AddictionEquity Act does not mandate that employers provide coverage formental health benefits, but requires that those large employergroups (more than 50 employees) that do provide mental healthbenefits must do so in full parity with other medical benefitscovered under the policy.

After the federal act takes effect in October, Timothy's Lawwill require that large group policies provide mental healthbenefits, and the federal act will require that any such mentalhealth benefits provided by large group policies be in full paritywith other medical benefits.

New York State Insurance Superintendent Eric Dinallo said, "Thisreport shows that Timothy's Law has been a success. More NewYorkers are getting better coverage for mental health care with noadded cost to small businesses."