Figure 7. Unlimited mental health benefits do not cost significantly more than plans with limits

Figure 8. Mental health care costs fell under managed care carve-out plan

 

* Managed care often claims to provide all mental health services at times when it offers only ultra brief therapy, i.e. a short term treatment which is often ineffective depending on the mental illness.

* Managed care, particularly under the parity laws, often claims that mental health benefits are unlimited, when, in reality, hidden policies and rules make even ordinary treatment unavailable.

* Medication is frequently presented as if it is a complete treatment. Managed care often fails to inform patients of any treatment alternative outside of the plan.

Despite these problems, managed care, in some form, has been recognized by unions, employers, and government agencies as an organized system which can deliver cost-effective health care, incorporating benefit design features, financial incentives for providers, controls on unnecessary utilization, and emphasis on providing quality health care in the most efficient settings.