Backers said the costs of parity would be more than offset by reductions in other healthcare costs and lower criminal recidivism.

"Those who oppose SB 1 argue that the cost of parity is something Oregon cannot afford," Gov. Ted Kulongoski said. "On the contrary, I believe that the costs to individuals, to employers and to the state resulting from our current lack of parity are unsustainable. When individuals with mental illness and chemical dependency receive adequate treatment, symptoms are reduced, children learn and thrive, and adults are able to work and participate as productive members of society."

"It is time to end discrimination against the mentally ill," said Sen. Avel Gordly (D-Portland) whose son has schizophrenia. Senate President Peter Courtney (D-Salem) said that parity was "as important as any issue we'll take up this session."

But opponents decried the measure as cost-shifting to the private sector and said that some employers would cut back on other benefits to pay for addiction and mental-health care.

Companion legislation has yet to get a hearing in the state House. Oregon insurers already are required to cover mental illness, but are still allowed to limit coverage in order to control costs.

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