FL H0007

Requires insurers, HMOs, and health service plan corporations to offer optional coverage for mental and nervous disorders as defined in the most recent Diagnostic and Statistical Manual of Mental Disorders, with policyholders able to select alternative benefit levels.

Establishes parity requirements for specified mental health conditions (schizophrenia, psychotic disorders, mood disorders, anxiety disorders, substance abuse disorders, eating disorders, and childhood ADD/ADHD) with benefits no less favorable than physical illness coverage.

For other mental health disorders not specifically listed, allows limited inpatient benefits (minimum 45 days per benefit year), outpatient benefits (maximum 60 visits per benefit year), and partial hospitalization benefits capped at the cost of 45 days of inpatient hospitalization.

Permits insurers to impose financial incentives, peer review, and utilization management methods to control costs and service use without compromising quality of care.

Exempts group health plans from these requirements if application causes plan costs to increase more than 2 percent, as certified by an independent actuary to the Office of Insurance Regulation, effective January 1, 2011.