The 1996 Mental Health Parity Act requiring equal annual and lifetime dolla
r limits for mental health benefits is to sunset 30 September 2001. This pa
per reviews the impact and limitations of both this law and existing state
provisions and describes recent research on the actual and projected costs
associated with such laws. We contend that full parity provided within the
context of managed care not only is possible, but represents a "sequential"
rather than a final step toward the broader goal of achieving equity in th
e treatment of persons with mental and addictive disorders.