Pa. Insurers Falling Short in Providing Drug TreatmentJuly 2, 2003
Research Summary
A legislative report shows that commercial managed-care plans in Pennsylvania are not adequately delivering the minimum coverage required under state law for alcohol and other drug treatment, Alcoholism & Drug Abuse Weekly reported June 16.
The policy audit, performed by the state's Legislative Budget and Finance Committee, found deficiencies in outpatient treatment and residential rehabilitation services.
For instance, state law requires a 30-day minimum for inpatient, non-hospital treatment. However, the report found that the average length of stay at three behavioral healthcare organizations is less than nine days.
"What is clear from the data we collected is that the average duration of delivered services for the commercial managed-care plans does not begin to approach the minimum provisions that the law requires insurers to include in their coverage," said Bob Frymoyer, the committee's assistant chief analyst.
Furthermore, the audit uncovered numerous "problematic areas," including cost-shifting from the private to the public sector, and confidentiality standards that require treatment providers to either document claims in such a manner that violate state regulations or be denied payment for services.
Under Pennsylvania law, the minimum coverage for alcohol and other drug treatment is seven days of detoxification services per year and 30 days of residential rehabilitation per year, with lifetime limits.
Managed-care companies argue that the law does not allow them to deny minimum coverage when the conditions for treatment are not met.
State lawmakers said the report supports their efforts to pass a bill that would make commercial insurance companies more accountable for complying with the law.
Obtain copies of the report, "Drug and Alcohol Treatment Services in a Managed Care Environment" (PDF file is 160 KB and requires the free Adobe Acrobat Reader to download), or by calling 717-783-1600.
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