Busch, S.H. and C.L. Barry
Inquiry-Fall 2008
State mental health parity laws improve equity in private
insurance coverage for mental and physical health services, but prior research
shows no effect on service use. We study whether state parity differentially
affects individuals by employer size since large firms are often exempt from
state health mandates due to the Employee Retirement Income Security Act. We
also examine whether state parity laws differentially affect use among
individuals with low incomes or in poor mental health. We find that individuals
in smaller firms are more likely to use services post-parity implementation and
that this effect is concentrated among low-income individuals.