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Effect of Insurance Parity on Substance Abuse Treatment

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Topics: FEHBP | Out-of-Pocket | Parity | Substance Abuse

Psychiatric Services has published a study examining the impact of the 2001 implementation of substance abuse parity in the Federal Employee Health Benefit Program (FEHBP). Examining health plan spending and treatment utilization, the study reviewed data from six FEHBP health plans between 1999 and 2002. Comparing FEHBP plans with similar plans not offering substance abuse treatment at parity, the authors found that parity did not significantly impact substance abuse treatment utilization. However, the study found that individuals receiving substance abuse treatment in plans with parity incurred an average of $101.09 less in out-of-pocket expenses than did similar individuals in non-parity plans. The authors conclude that parity successfully lowered individuals’ costs without increasing plan costs.

Azzone, V., et. al. (2011). Effect of insurance parity on substance abuse treatment. Psychiatric Services,  62:129-134. doi: 10.1176/appi.ps.62.2.129. http://psychservices.psychiatryonline.org/cgi/content/abstract/62/2/129exit disclaimer small icon 

Authors: Azzone, V., Frank, R., Normand, S. T., and Burnam, A.


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