294 Human Resources Management for Public and Nonprofi t Organizations
former employees, spouses, and dependents to purchase insurance cover-
age for a limited amount of time after leaving the organization. COBRA
also applies to divorced, separated, or widowed spouses, and it extends
Medicare coverage to state and local government employees.
The Health Insurance Portability and Accountability Act of 1996
allows employees to switch their health insurance plan from one orga-
nization to another to get new heath coverage, regardless of preexisting
health conditions. The legislation also prohibits group insurance plans
from dropping coverage for a sick employee and requires them to make
individual coverage available to people who leave group plans. In April
2003, the privacy component of the act became activated. Employees
working for pharmacies, hospitals, clinics, health insurance companies,
and other health care organizations have an obligation to protect a
patient ’ s privacy, and organizations must make sure that health data are
secure and private.Mental Health Care In an effort to encourage individuals to seek mental
health treatment, the Mental Health Parity Act was passed into law in 1996.
The act provided that beginning in January 1998, health insurance plans
must provide the same coverage for mental illness as for physical disorders.
It requires that group health plans provide parity for treatment of mental
illness. The 1996 Mental Health Parity Act established parity for annual
and lifetime dollar limits (dollar - based caps on coverage applied either
annually or over an enrollee ’ s life). This left health plans free to continue
imposing lower caps on covered inpatient days and outpatient visits, as
well as higher cost sharing and deductibles that apply only to mental
illness treatment. Critical provisions in S558 are the expansions of the
1996 law to include prohibitions on unequal limitations on day or visit
limits and financial limitations. Another key provision requires that
this parity standard for mental illness treatment be measured against
“ substantially all ” medical - surgical coverage, and not just a portion of
medical - surgical benefi ts.
Forty - one states have their own mental health parity laws that differ in
terms of their scope and requirements. Employers and employees should
review the mental health parity laws in the state where they reside to see
what coverage is provided.Genetic Nondiscrimination Act In April 2008, the U.S. House of
Representatives and the U.S. Senate passed the Genetic Nondiscrimi-
nation Act, and President Bush signed it on May 22, 2008. The act