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National Alliance on Mental Illness
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NAMI Awards Compaq For Leading The Way In Equal Insurance Coverage For Mental Illness

Experience of Businesses Refutes Arguments Against Mental Health Parity


Contact:
Mary Rappaport/Valerie Rheinstein (703) 524-7600
For Immediate Release
31 Jul 98

Arlington, VA -- Compaq was among nine major American corporations representing thousands of employees across the United States to receive the first-ever Leadership in Business award from the National Alliance for the Mentally Ill (NAMI) at the organization's annual convention in Washington, DC. The prestigious award is given for outstanding corporate leadership in providing employees equal insurance coverage for mental illnesses as that provided for other physical illnesses -- a practice known as "parity."

"This year's award winners have done a great service to their employees and to the thousands of families that depend on them for healthcare coverage," said Laurie Flynn, executive director of NAMI. "As corporate role models, they set an example for the rest of the business world to follow."

Recipients of this year's award in addition to Compaq are Black and Decker, EEX, Exxon Corporation, Lubrizol, Pitney Bowes Inc., Prime Tanning, Sun Microsystems, and Texas Instruments.

Bruce Davidson, employee assistance and worklife programs manager at Compaq, accepted the award for his company. "We've worked hard to make sure our employees have the support they need to reach and maintain their full potential, whether in the workplace or at home," said Davidson. "A person who is not getting the treatment they need -- or who is concerned about a family member who is not getting treatment -- cannot be expected to perform at the level their jobs require."

The National Advisory Mental Health Council this month issued a special report to Congress on the cost of parity. In the report, NAMHC found that for managed care plans, full parity increases total health care costs by less than one percent annually. The study also found that plans implementing parity in conjunction with managed care could actually reduce costs substantially -- by as much as 30 percent to 50 percent. All nine companies being honored this week stand as examples to this finding. "None experienced significant increases in health care costs," said Flynn.

Studies from organizations such as the Rand Corporation, William M. Mercer, Inc., and others show the cost of parity is negligible. It is also widely known that access to treatment for mental illness results in lower costs, higher productivity, and reduced absenteeism.

The awards were presented at NAMI's annual convention that was held in Washington, DC, from July 15-19.  

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