C. L. Barry and S. H. Busch
Health Services Research - June 2007
Objective. To study the financial
impact of state parity laws on families of children in need of mental health
services.
Data Source. Privately insured
families in the 2000 State and Local Area Integrated Telephone Survey National
Survey of Children with Special Health Care Needs (CSHCN) (N=38,856).
Study Design. We examine whether
state parity laws reduce the financial burden on families of children with
mental health conditions. We use instrumental variable estimation controlling
for detailed information on a child's health and functional impairment. We
compare those in parity and nonparity states and those needing mental health
care with other CSHCN.
Principle Findings. Multivariate
regression results indicate that living in a parity state significantly reduced
the financial burden on families of children with mental health care needs.
Specifically, the likelihood of a child's annual out-of-pocket (OOP) health care
spending exceeding $1,000 was significantly lower among families of children
needing mental health care living in parity states compared with those in
nonparity states. Families with children needing mental health care in parity
states were also more likely to view OOP spending as reasonable compared with
those in nonparity states. Likewise, living in a parity state significantly
lowered the likelihood of a family reporting that a child's health needs caused
financial problems. The likelihood of reports that additional income was needed
to finance a child's care was also lower among families with mentally ill
children living in parity states. However, we detect no significant difference
among residents of parity and nonparity states in receipt of needed mental
health care.
Conclusion. These results indicate
that state parity laws are providing important economic benefits to families of
mentally ill children undetected in prior research.