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Mental Health Parity Laudable, But House Legislation Would Put Medicaid Patients at Risk, Lilly Says
Date:3/5/2008

Provisions of HR 1424 could reduce access to necessary medications for

thousands of Americans

INDIANAPOLIS, March 5 /PRNewswire-FirstCall/ -- Today Eli Lilly and Company (NYSE: LLY) reiterated its strong support for mental health parity -- the principle that insurers should treat mental and physical illnesses equally. But the company also expressed strong concerns over the way the parity legislation in the U.S. House (HR 1424) seeks to pay for the bill: by increasing the so-called Medicaid rebate from 15.1 percent to 20.1 percent. Such an increase would limit Medicaid beneficiaries' access to medicines, including mental health medications, said Lilly. The company said its position is supported by a leading mental health advocacy group and Congressional Budget Office data.

"HR 1424 would offer more generous mental health benefits to Americans, but it risks doing so on the backs of the sickest and poorest Americans, including vulnerable Medicaid patients," said Sonya D. Sotak, director, federal affairs, for Lilly. "At first blush, increasing the Medicaid rebate appears an alluring target for the federal government to pay for parity, but the harsh irony is that such an action could lead to even greater disparities in Medicaid patients' future access to medications."

In a letter last week to House leaders, a leading mental health advocacy group, the National Council for Community Behavioral Healthcare, echoed these concerns. "I fear that increasing the pharmaceutical rebate in Medicaid could have the unintended consequence of reducing access to necessary medications for thousands of Americans. I urge you to find another way to pay for the provisions of HR 1424," wrote NCCBH President and CEO Lin
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SOURCE Eli Lilly and Company
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