Economic grand rounds: the price is right? Changes in the quantity of services used and prices paid in response to parity.
The impact of parity coverage on the quantity of behavioral health services used by enrollees and on the prices of these services was examined in a set of Federal Employees Health Benefit (FEHB) Program plans. After parity implementation, the quantity of services used in the FEHB plans declined in five service categories, compared with plans that did not have parity coverage. The decline was significant for all service types except inpatient care. Because a previous study of the FEHB Program found that total spending on behavioral health services did not increase after parity implementation, it can be inferred that average prices must have increased over the period. The finding of a decline in service use and increase in prices provides an empirical window on what might be expected after implementation of the federal parity law and the parity requirement under the health care reform law.
Department of Psychiatry, University of Maryland School of Medicine, 1501 S. Edgewood St., Suite L, Baltimore, MD 21227, USA. hh.goldman@verizon.net
Howard H
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Goldman
Colleen L
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Barry
Sharon-Lise T
SL
Normand
Vanessa
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Azzone
Alisa B
AB
Busch
Haiden A
HA
Huskamp
D006264:Health Benefit Plans, Employee / Q000331:legislation & jurisprudence*; D017048:Health Care Costs / Q000639:trends*; D018166:Health Care Reform / Q000331:legislation & jurisprudence; D006801:Humans; D019458:Insurance Coverage / Q000331:legislation & jurisprudence*; D008605:Mental Health Services / Q000191:economics* / Q000706:statistics & numerical data; D011787:Quality of Health Care; D014481:United States