In 1987 Medicare benefits for the mentally ill were expanded for the
first time in 22 years. A major change was the removal of limits and
copayments for the "medical management of psychopharmacologic agents."
Payment for medical management recognizes the trend toward the
remedicalization of psychiatry; however, medical management can be defined
either broadly or narrowly. The authors suggest pricing strategies for both
medical management of mental disorders and psychotherapy. Enlightened
design of psychiatric benefits will cover all forms of treatment according
to appropriate rules. Access to treatment for mental illness is at stake as
these rules develop.